ZuoTi.Pro
Question

. A company manufacturing snowboards has fixed costs of $200 per day and total costs of $3800 per day at a daily output of 20

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

A:

Variable costs = (3800-200)/20

= 180 per unit

Total cost per day = 200+ 180X = C(x)

B:

AC(x) = 200/X + 180

C:

Output Average cost
1 380.00
2 280.00
3 246.67
4 230.00
5 220.00
6 213.33
7 208.57
8 205.00
9 202.22
10 200.00
11 198.18
12 196.67
13 195.38
14 194.29
15 193.33
16 192.50
17 191.76
18 191.11
19 190.53
20 190.00
21 189.52
22 189.09
23 188.70
24 188.33
25 188.00
26 187.69
27 187.41
28 187.14
29 186.90
30 186.67
31 186.45
32 186.25
33 186.06
34 185.88
35 185.71
36 185.56
37 185.41
38 185.26
39 185.13
40 185.00

We see that the average cost is reducing. However initially the drop in the average cost was much higher which is seen by the slope of the curve. After that the curve flattens. The reason for the decline in the average cost is that the fixed cost gets distributed between the number of units. This reduces the average cost per unit of production. In the begiining there is a sudden impact when the fixed cost gets distributed between the number of units. However later the impact of the division reduces which flattens the curve.

Save .:勺(-)、R L . Book1-Excel (Product Activation Failed) Chart Tools Sign in File Home Insert Page Layout Formulas Data Re

0 0
Add a comment
Know the answer?
Add Answer to:
. A company manufacturing snowboards has fixed costs of $200 per day and total costs of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 3. Listeners Paradise, a used CD store has daily fixed costs of $437 per day and...

    3. Listeners Paradise, a used CD store has daily fixed costs of $437 per day and 40 CDs cost $557 to produce. The CD’s sell for $12.50 each. (a) Find an equation for the total daily cost, C(x) (b) Find an equation for the total daily revenue, R(x). (c) Find an equation for the profit function, P(x). (d) Find the number of CD’s that must be sold daily in order to break even.

  • roducing 100 units is $49 + 12. Suppose fixed costs are $500, and the total costs...

    roducing 100 units is $49 + 12. Suppose fixed costs are $500, and the total costs of producing 100 unit a. What are the variable costs of producing 100 units. b. Write out the total cost equation assuming variable costs are linear. Tu may sound hard, but it is just the equation for total costs as a function output: TC =? c. What is the marginal cost of the 50th unit of output? d. What is the average total cost...

  • Question 3-4 SESSION 13 The marginal revenue is the rate of change in total revenue per...

    Question 3-4 SESSION 13 The marginal revenue is the rate of change in total revenue per unit increase in output, Q The marginal cost is the rate of change in total cost per unit increase in output, Q AR is defined as average revenue per unit for the first Q su ccessive units sold. AR is determined by dividing total reven ue by the quantity sold, Q The AR function is equal to price, P. where Pis given by the...

  • QUESTION 3 A pizza shop has fixed costs of S10 per day and variable costs of...

    QUESTION 3 A pizza shop has fixed costs of S10 per day and variable costs of S1 per slice Its oven can. handle up to 40 slices a day and it is impossible to obtain additional capacity. Sketch the Pizza shop's average cost curve, average variable cost curve, average fixed cost curve and marginal cost curve on the same graph. Please ensure your graph is legible and properlhy labelled

  • please explain question 2 . rmation on fixed and variable costs in 1(b) please fill in...

    please explain question 2 . rmation on fixed and variable costs in 1(b) please fill in the table below. The numbers olumns should be identical to the last two columns in your table in number 1 in the last two columns should be identical to above. Average Average Fixed Variable Workers Output Cost Cost Average Total Cost Marginal Cost 155 Using the numbers in your table above graph average fixed costs, average variable costs, average total costs, and marginal costs....

  • 4) A company that specializes in manufacturing reproductions of classic automobiles has fixed costs of $720,000...

    4) A company that specializes in manufacturing reproductions of classic automobiles has fixed costs of $720,000 and variable costs of $35,000 per automobile. The automobiles sell for $50,000. a.) Write a function, C, for the cost of producing X automobiles. What is the cost of producing 60 automobiles? (5 points) b.) Write a function, R, for the revenue the company makes when selling x automobiles. (5 points) c.) Write a function, P, for the profit in terms of x. What...

  • 1. Toys Create Corp., produce puzzles and sell to consumers. A worker costs MYR 100 a day, and the firm has fixed costs of MYR 200. Workers Output Marginal Product Total Cost Average Total Cost Marginal Cost 0 0 --- --- --- 1 20

    1.     Toys Create Corp., produce puzzles and sell to consumers. A worker costs MYR 100 a day, and the firm has fixed costs of MYR 200.  WorkersOutputMarginal ProductTotal CostAverage Total CostMarginal Cost00---------1202503904120514061507155a.      Using the information above, calculate the marginal product, total cost, average total cost, and marginal cost. Identify the output level at minimum average total cost for Toys Create Corp.  b.     Construct the marginal-cost and average-total-cost curves for Toys Create Corp. Using your own words, explain diminishing marginal product and...

  • Complete the table. Assume that the firm has $100 in total fixed costs and that each...

    Complete the table. Assume that the firm has $100 in total fixed costs and that each additional worker costs $50 to hire. At what level of variable input does diminishing returns set in? What is the minimum cost output? Why is it important for a company to know its average total cost per item? Explain why average variable cost decreases then increases? Graph marginal product and marginal cost. What relationship do you see between marginal product and marm: - cost?...

  • Assume fixed costs are $200/day and labor costs are $80 per day per worker (assume labor...

    Assume fixed costs are $200/day and labor costs are $80 per day per worker (assume labor costs are the only variable costs). If the company could sell cases of snack cakes for $14 per case, how many cases of snack cakes should the company produce in order achieve the highest profit possible? # of Workers Q of Snack Cakes TVC TFC TC MC 0 0 1 5 1.6 10 2 15 2.35 20 2.75 25 3.22 30 3.75 35 4.35...

  • An outboard motor has an initial price of $1,470. A service contract costs $200 for the...

    An outboard motor has an initial price of $1,470. A service contract costs $200 for the first year and increases $120 per year thereafter. The total cost of the outboard motor (in dollars) after n years is given by C(n)=1,470 + 150n + 301², where n21. Complete parts (A) through (C). (A) Write an expression for the average cost per year, Čín), for n years. Č(n) = (B) Graph the average cost function found in part (A). Choose the correct...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT