Question

Goodyear Tires gives discount for larger quantities of tire purchase. Their discounts are as follows

First 1500 tires: $20 each

Next 2500 tires: $18 each

Any that exceeds 4000 tires: $15 each

Build an Excel spreadsheet to calculate the average cost and marginal cost for the following quantities of tire purchase.

600

1600

2600

3600

Answer 1

sorry i cant provide you with the excel sheet as it is an unsupported format.

20$ each for first 1500 18$ each for first 2500 15$ each for more than 4000 Average cost of each tire Marginal cost through discounted totalof each tire Total number Discounted total 12000 31800 47000 67000 20 19.875 600 1600 2600 3600 600 1500 100 1100 0 100 2500 2500 0 0 0 0.125 18.07692308 1.923076923 0

Average cost=discounted total/Total number of tires

marginal cost will be the margin of average cost from the highest discounted price i.e 20$ each

Thank you for further help u can ask in the comment section.