You estimate that the average variable cost (AVC) will be $100 for the mower and $1,000 for the tractor. The total fixed cost (TFC) will be $50,000 for the mower and $100,000 for the tractor. What is the total cost of the mowers for each order?
$17,000,000
$2,100,000
$10,050,000
$1,900,000
What is the total cost of the tractors for each order?
$600,000
$5,200,000
$2,100,000
$4,100,00
2. What is the average total cost of the mowers?
$190.28
$210.75
$100.50
$140.10
What is the average total cost of the tractors?
$1,800
$1,200
$2,000
$1,050
3. You consult with your colleagues, and you all agree that effective pricing can assist you in avoiding the serious financial problems that may occur if prices are too high or too low. If the price is high, you may price yourselves out of the market. If the price is low, you may be underpaid for your work. Consequently, you decide to employ a 30 percent markup. What is the new price of the mower?
$195.50
$230.20
$95.15
$130.65
What is the new price of the tractor?
$1,365
$2,050
$2,300
$1,000
4. What are the profits for the mower under this scenario?
$30.15
$50.20
$60.10
$25.50
What are the profits for the tractor?
$255
$520
$610
$315
5. What are the total revenues for the mowers for each order?
$13,065,000
$11,055,000
$12,400,000
$12,110,000
What are the total revenues for the tractors for each order?
$2,410,000
$2,529,000
$2,493,000
$2,730,000
Q1 total cost of the mowers for each order = 10,050,000
Q1 total cost of the tractors for each order = 2,100,000
Product | Average Variable Cost | Quantity | Total fixed cost | Total cost |
Mower | 100 | 100,000 | 50,000 | 10,050,000 |
Tractor | 1,000 | 2,000 | 100,000 | 2,100,000 |
Q2 average total cost of the mowers = 100.50
Q2 average total cost of the tractors = 1,050.00
Product | Total cost | Quantity | Average total cost |
Mower | 10,050,000 | 100000 | 100.50 |
Tractor | 2,100,000 | 2000 | 1,050.00 |
Q3 the new price of the mower = 130.65
Q3 the new price of the tractor = 1,365.00
Product | Average total cost | Markup | Price |
Mower | 100.50 | 30.15 | 130.65 |
Tractor | 1,050.00 | 315.00 | 1,365.00 |
Q4 profits for the mower under this scenario = 30.15
Q4 profits for the tractor under this scenario = 315
Q5 total revenues for the mowers for each order = 13,065,000
Q5 total revenues for the tractors for each order = 2,730,000
Product | Price | Quantity | Total Revenues |
Mower | 130.65 | 100000 | 13,065,000.00 |
Tractor | 1,365.00 | 2000 | 2,730,000.00 |
You estimate that the average variable cost (AVC) will be $100 for the mower and $1,000...
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