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Annette [7]
3 years ago
7

​Vipsana's Gyros House sells gyros. The cost of ingredients​ (pita, meat,​ spices, etc.) to make a gyro is​ $2.00. Vipsana pays

her employees​ $60 per day. She also incurs a fixed cost of​ $120 per day. Calculate​ Vipsana's average fixed cost per gyro when she produces 50 gyros using two​ workers?
Business
1 answer:
andrezito [222]3 years ago
5 0

Answer:

The average fixed cost is $2.4.

Explanation:

Vipsana's Gyros House sells gyros.

The cost of ingredients​ to make a gyro is​ $2.00.  

Vipsana pays her employees​ $60 per day.  

She also incurs a fixed cost of​ $120 per day.

The cost incurred on ingredients and workers is a variable cost.  

The total fixed is thus $120.  

The average fixed cost for 50 gyros

= \frac{TFC}{Q}

= \frac{120}{50}

= $2.4

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