Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1.00 per poster. She has fixed costs of $250.00. Her variable costs are $1,000 for the first thousand posters, $800 for the second thousand, and then $750 for each additional thousand posters.
What is her AFC per poster if she prints 1,000 posters? Instructions: Round your answer to two decimal places.
What is her AFC per poster if she prints 2,000 posters? Instructions: Round your answer to three decimal places.
What is her AFC per poster if she prints 10,000 posters? Instructions: Round your answer to three decimal places.