In a slow year, Deutsche Burgers will produce 2.8 million hamburgers at a total cost of $4.2 million. In a good year, it can produce 5.3 million hamburgers at a total cost of $6.0 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.) |
| 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 2 million hamburgers? (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? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
Solution: What are the fixed costs of hamburger productio