Question

Q1- Brell Corporation manufactures umbrellas. The cloth used in one umbrella costs $ 15. The corporation rents a manufacturing factory for a monthly rent of $ 275. Prepare a table showing the Total Fixed Cost, Total Variable cost, Total Cost and Average Fixed Cost, Average Variable Cost, and Average Cost for three different levels of production. (No. of units at three different levels can be chosen by you).

Answer 1

	sale in units
particular	5,000	10,000	15,000
variable cost (15 per unit)	75,000	1,50,000	2,25,000
Fixed cost per year	3,300	3,300	3,300
total cost	78,300	1,53,300	2,28,300

sale in unit	total fixed cost	total variable cost	total cost (fixed + variable)	average fixed cost (fixed cost / units)	average variable cost	average cost (total cost / units)
5,000	3,300	75,000	78,300	0.66	15	15.66
10,000	3,300	1,50,000	1,53,300	0.33	15	15.33
15,000	3,300	2,25,000	2,28,300	0.22	15	15.22