In a slow year, Deutsche Burgers will produce 2.400 millionhamburgers at a total cost of $3.900 million. In a good year, itcan produce 4.200 million hamburgers at a total cost of $4.800million. a. What are the fixed costs of hamburger production? (Donot round intermediate calculations. Enter your answer in millionsrounded to 1 decimal place.) b. What is the variable cost perhamburger? (Do not round intermediate calculations. Round youranswer to 2 decimal places.) c. What is the average cost per burgerwhen the firm produces 1 million hamburgers? (Do not roundintermediate calculations. Round your answer to 2 decimal places.)d. What is the average cost per burger when the firm produces 2million hamburgers? (Do not round intermediate calculations. Roundyour answer to 2 decimal places.) e. Why is the average cost lowerwhen more burgers are produced? The fixed costs are spread acrossmore burgers. Variable costs are lower per burger. Fixed costs areconstant per burger.
