Question: Problem 10-4 Fixed and Variable Costs (L03) In a slow year, Deutsche Burgers will produce 4 million hamburgers at a total cost of $4.9 million.

Problem 10-4 Fixed and Variable Costs (L03) In a slow year, Deutsche Burgers will produce 4 million hamburgers at a total cost of $4.9 million. In a good year, it can produce million hamburgers at a total cost of $5.2 million. a. What are the fixed costs of hamburger production? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places. b. What is the variable cost per hamburger? 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 2 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 3 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? Answer is complete but not entirely correct. a. Fixed cost b. Variable cost c. Average cost d. Average cost e. Why is the average cost lower when more burgers are produced? $ million $ 0.5 per burger $ 1.95 per burger $ 1.47 per burger The fixed costs are spread across more burgers 2,900,000.000 >

Problem 10-4 Fixed and Variable Costs (LO3) In a slow year, Deutsche Burgers will produce 4 million hamburgers at a total cost of $4.9 million. In a good year, it can produce million hamburgers at a total cost of $5.2 million. o. What are the fixed costs of hamburger production? Note: Do not round intermediate calculations, Enter your answer in millions rounded to 3 decimal places. b. What is the variable cost per hamburger? Note: Do not round intermediate calculotions. Round your answer to 2 decimal ploces. c. 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. d. What is the average cost per burger when the firm produces 3 million hamburgers? Note: Do not round intermediate calculations. Round your onswer to 2 decimal places. e. Why is the average cost lower when more burgers are produced

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