Question: Problem 10-4 Fixed and Variable Costs (LO2) In a slow year, Deutsche Burgers will produce 2.0 million hamburgers at a total cost of $3.6 million.

Problem 10-4 Fixed and Variable Costs (LO2)

In a slow year, Deutsche Burgers will produce 2.0 million hamburgers at a total cost of $3.6 million. In a good year, it can produce 4.5 million hamburgers at a total cost of $5.1 million.

a.

What are the fixed costs of hamburger production? (Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place.)

Fixed cost $ million

b.

What is the variable cost per hamburger? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Variable cost $ per burger

c.

What is the average cost per burger when the firm produces 1 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Average cost $ per burger

d.

What is the average cost per burger when the firm produces 2 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Average cost $ per burger

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