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GarryVolchara [31]
3 years ago
13

In a slow year, Deutsche Burgers will produce 2.8 million hamburgers at a total cost of $3.4 million. In a good year, it can pro

duce 4.8 million hamburgers at a total cost of $4.6 million.a. What are the fixed costs of hamburger production
Business
1 answer:
lorasvet [3.4K]3 years ago
7 0

Answer:

the fixed cost is $1.72 million  

Explanation:

The computation of the fixed cost is shown below:

= Total cost - variable cost

= $3.4 million - ($4.6 million - $3.4 million) ÷ $3.4 million - $.1.2 million ÷ $2 million

= $3.4 million - 2.8 million × $0.60 million

= $1.72 million

Hence, the fixed cost is $1.72 million  

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3 years ago
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7 0
2 years ago
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