Consider the information about fixed costs, also known as overhead, at Billy Ray's Hotdog Hut. Use...

  

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Consider the information about fixed costs, also known as overhead, at Billy Ray's Hotdog Hut. Use the table, where Q is output, FC is fixed cost, and AFC is average fixed cost, to answer the questions. AFC AFC = $ Q 0 100 125 165 200 225 FC $500 Calculate average fixed cost when output is 100. Round your answer to the penny. AFC = $ $4.00 $3.03 $2.50 Calculate average fixed cost when output is 225. Round your answer to the penny. Is Billy Ray spreading his overhead, or fixed costs? Why is this the case? Consider the information about fixed costs, also known as overhead, at Billy Ray's Hotdog Hut. Use the table, where Q is output, FC is fixed cost, and AFC is average fixed cost, to answer the questions. AFC AFC = $ Q 0 100 125 165 200 225 FC $500 Calculate average fixed cost when output is 100. Round your answer to the penny. AFC = $ $4.00 $3.03 $2.50 Calculate average fixed cost when output is 225. Round your answer to the penny. Is Billy Ray spreading his overhead, or fixed costs? Why is this the case?

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