Question

Output Total Variable Cost 0 $ 0 15 30 60 75 $ 50 $90 $120 $160 $220 $300 $400 $520 $670 $900 90 105 120 135 150 1. Given the above variable cost data and assuming fixed costs equal the value of the last four digits of your MDC student ID (using two decimal places), create a file in Excel that lists Output, Fixed Cost, Variable Cost, Total Cost, Average Fixed Cost, Average Variable Cost, Average Total Cost, and Marginal Cost. For example, fixed costs equal $12.34 when the last four digits of the MDC student ID are "1234". The Excel table should be constructed using formulas wherever calculations are required. For guidance, an example of the table is presented in Section 13-3 of your textbook. 2. Using Excel, plot AFC, AVC, ATC, and MC in a graph. Figure 5 in Chapter 13 provides an example. 3. Submit to the drop box as a 1 page Excel file attachment.

Answer 1

1.

Assume that the last four digit of the MDC student ID is 1234

Thus, the fixed cost to be observed is 12.34

TC = Total Cost = Total Variable Cost + Total Fixed Cost

AVC = Average Variable Cost = Total Variable Cost / Output

AFC = Average Fixed Cost = Total Fixed Cost / Output

ATC = Average Total Cost = Total Cost / Output

MC = Marginal Cost = [Total Cost at n output - Total Cost at k output ] /(n-k)

Thus, the complete table is:

Output	Total Variable Cost	Total Fixed Cost	Total Cost	Average Fixed Cost	Average Variable Cost	Average Total Cost	Marginal Cost
0	0	12.34	12.34	-	-	-	-
15	50	12.34	62.34	0.822666667	3.333333333	4.156	3.333333333
30	90	12.34	102.34	0.411333333	3	3.411333333	2.666666667
45	120	12.34	132.34	0.274222222	2.666666667	2.940888889	2
60	160	12.34	172.34	0.205666667	2.666666667	2.872333333	2.666666667
75	220	12.34	232.34	0.164533333	2.933333333	3.097866667	4
90	300	12.34	312.34	0.137111111	3.333333333	3.470444444	5.333333333
105	400	12.34	412.34	0.11752381	3.80952381	3.927047619	6.666666667
120	520	12.34	532.34	0.102833333	4.333333333	4.436166667	8
135	670	12.34	682.34	0.091407407	4.962962963	5.05437037	10
150	900	12.34	912.34	0.082266667	6	6.082266667	15.33333333

2.

On Plotting AFC, AVC, ATCand MC is as follows:

Output AFC AVC ATC MC AFC, AVC, ATC and MC 3.333333333 3.333333333 2.666666667 2.666666667 0.822666667 0.411333333 0.274222222 0.205666667 0.164533333 0.137111111 0.11752381 0.102833333 0.091407407 0.082266667 2.666666667 2.666666667 2.933333333 3.333333333 3.80952381 4.333333333 4.962962963 6 4.156 3.411333333 2.940888889 2.872333333 3.097866667 3.470444444 3.927047619 4.436166667 5.05437037 6.082266667 AFC, AVC, ATC and MC 5.333333333 6.666666667 120 135 150 10 15.33333333 0 20 40 60 100 120 140 160 | 80 Output — AFC — AVC — ATC MC

3. Excel file cannot be attached. Re-create in EXcel and drop in drop box