In a slow year, Deutsche Burgers will produce 2.8 million hamburgers at a total cost of $4.2 million. In a good year, it can produce 5.3 million hamburgers at a total cost of $6.0 million.
| a. |
What are the fixed costs of hamburger production? (Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place.)
|
| b. |
What is the variable cost per hamburger? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
|
| Variable cost |
$ per burger |
| c. |
What is the average cost per burger when the firm produces 2 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
|
| Average cost |
$ per burger |
| d. |
What is the average cost per burger when the firm produces 3 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
|
| Average cost |
$ per burger |