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In a slow year, Deutsche Burgers will produce 2.0 million hamburgers at a total cost of $4.1 million. In a good year, it can produce 5.0 million hamburgers at a total cost of $5.6 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.)
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