Problem $10-4$ Fixed and Variable Costs $($LO$3)$

In a slow year, Deutsche Burgers will produce $2$ million hamburgers at a total cost of $$3\mathrm{.}5$ million. In a good year, it can produce $4$

million hamburgers at a total cost of $$4\mathrm{.}5$ million.

a$.$ What are the fixed costs of hamburger production?

Note: Do not round intermediate calculations. Enter your answer in millions rounded to $1$ decimal place.

b$.$ What is the variable cost per hamburger? $($$$1\mathrm{.}00$ was wrong$)$

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

c$.$ What is the average cost per burger when the firm produces $1$ million hamburgers?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

d$.$ What is the average cost per burger when the firm produces $2$ million hamburgers?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

e$.$ Why is the average cost lower when more burgers are produced?