Question: A pizza business has the cost structure described below. The firm's fixed cost is $20 per day. Output (pizzas per day) Total cost of output

A pizza business has the cost structure described below. The firm's fixed cost is $20 per day.
Output (pizzas per day) Total cost of output (fixed + variable)
0...................................................................................$20
5...................................................................................$80
10................................................................................$120
15................................................................................$150
20................................................................................$175
25................................................................................$195
30................................................................................$210
35................................................................................$230
40................................................................................$225
What are the firm's average fixed costs (AFC) at an output of 5 pizzas?
a. $4
b. $20
c. $80
d. $100

Step by Step Solution

★★★★★

3.29 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Total fixed cost TFC ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1019-B-C-A-C-P-A(3159).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

A competitive firm has the cost structure described in the following table. Graph the marginal cost, average variable cost, and average total cost curves. How many units of output will it produce at...

The cost structure of a manufacturer of microchips is described in the following table. The firm's fixed costs equal $10 per day. Calculate the average variable cost, average fixed cost, and average...

Although only open for one year, Pizzeria Paradise has established a reputation as serving excellent deep-dish pizza and recently won a Best of City award. Management is interested in using the data...

3. A pizza business has the cost structure described below. The fi rms fi xed costs are $25 per day. Calculate the fi rms average fi xed costs, average variable costs, average total costs, and...

3. A pizza business has the cost structure described below. The firms fixed costs are $25 per day. Calculate the firms average fixed costs, average variable costs, average total costs, and marginal...

please help Question 1 (1 point) A local snow cone business sells snow cones in one size for $5. It has the following cost and output structure per hour Total Revenue Total Profit Marginal Cost...

PART 1 Sally is launching MyBeer. In order to launch her new brand, Sally must build a new brewery and engage in engage in a massive media campaign to promote MyBeer. The brewery will cost Sally $2...

Explain four main reinforcement types. For each, identify a situation where you have seen it used and assess the outcome.

Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2017, the following data are available. 1. Sales: 20,000...

In recent years, many companies are using zero coupon bonds to raise billions of dollars. True False

1.1 As of 2012, the pharmaceutical companies Abbott Laboratories, AstraZeneca, Aventis Pharmaceuticals, Bristol-Myers Squibb Company, Eli Lilly, Glaxo- SmithKline, Janssen, Johnson & Johnson,...

Determine the components of the reactions at A and B if (a) The 240-N load is applied as shown, (b) The 240-N load is moved along its line of action and is applied at E. 240 N 0.75 m 0.75 m DE -1.25...

The 192-N load can be moved along the line of action shown and applied at A, D, or E. Determine the components of the reactions at B and F when the 192-N load is applied (a) At A, (b) At D, (c) At E....

The 192-N load is removed and a 288 N m clockwise couple is applied successively at A, D, and E. Determine the components of the reactions at B and F when the couple is applied (a) At A, (b) At B,...

Security market line (SML) Assume that the risk-free rate, RF, is currently 7% and that the market return, rm, is currently 11%. a. Calculate the market risk premium. b. Given the previous data,...

The most common abuse of correlation in studies is to confuse the concepts of correlation with those of causation. Examples: No correlation: Height of a student and good grades The height of a...

1.Art purchased a new car for $18,000. His monthly payments are $488 for thirty six months. What is the annual rate of interest Art is paying on this loan? 2.The Company needs a new fork truck. There...