Answer: Given Fixed Cost-$10,000 Cost per cw.t=$990 Selling price per c.w.t=$17500 Number of Steer Weight(CWT) MPP APP TFC AFC AVC TR Profit 75 7.5 150 7.5 225 7.5 75 300 375 450 525 600 675 750 825 900 975 7.5 7.5 7.5 7.5 7.5 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 TVC TCMC 0 10,000 74250 84,250 148500 158,500 222750 232,750 297000 307,000 371250 381,250 445500 455,500 519750 529,750 594000 604,000 668250 678,250 742500 752,500 816750 826,750 891000 901,000 965250 975,250 990 990 990 990 990 990 990 990 990 990 990 990 990 133.33 66.67 44.44 33.33 26.67 22.22 19.05 16.67 14.81 13.33 12.12 11.11 10.26 990 1312500 1,228,250 990 2625000 2,466,500 990 3937500 3,704,750 990 5250000 4,943,000 990 6562500 6,181,250 990 7875000 7,419,500 990 9187500 8,657,750 990 1.1E+07 9,896,000 990 1.2E+07 11,134,250 990 1.3E+07 12,372,500 990 1.4E+07 13,610,750 990) 1.6E+07 14,849,000 990 1.7E407 16,087,250 7.5 75 7.5 7.5 7.5 7.5 7.5 7.5 130
Notes:- Caculation MPP = Change in weight, Change in Number of steer APP = Weight/ Number of Steer MC = Change in total cost, change in weight AFC = Total Fixed Cost/ weight AFC = Total Variable Cost/ weight Profit = TR-TC