Calculate total cost, fixed cost, variable cost

Reference no: EM13937758

Using the information in data set one, which I have included in the table below, recalculate total cost, fixed cost, variable cost, marginal cost, average total cost, average variable cost and average fixed costs if the price of the fixed input (the small stores rent) is not $200 but $250. A new lease may have caused the rent to increase.

I have created Table 1 for you to put your answers in. Assume the price of the variable input, labor, is still $50 per unit. When fixed costs change which other costs will increase? Compare the costs you calculate for table one to the costs calculated in the notes in chapter 7 to find the answer.

TABLE ONE FOR ANSWERS TO PROBLEM ONE

Units of Labor	Total Product (output)	FC	VC	TC	MC	ATC	AVC	AFC
0	0
1	3
2	7
3	12
4	16
5	19
6	21

Reference no: EM13937758

Questions Cloud

Should per unit tax be imposed on item that price elasticity : Governments impose taxes for several reasons. The most obvious reason is to raise revenues for the government. If the goal of a government is to raise the maximum revenues, should a per unit tax be imposed on an item that has a price elasticity of..

Find out how many times a customer generated an invoice : Find out how many times a customer generated an invoice and What is the max balance - Show the names of the customers for whom we have invoices.

Describing the main project theme : Ideally this is a brief title describing the main project theme. e.g. Design of a Domestic Security System. Name and Programme of Study Clearly identify your name, the programme of study. Aims of the Project Between 3 and 6 aims (more does n..

Search the web using the term variable costing : Search the Web using the term variable costing.

Calculate total cost, fixed cost, variable cost : Using the information in data set one, which I have included in the table below, recalculate total cost, fixed cost, variable cost, marginal cost, average total cost, average variable cost and average fixed costs if the price of the fixed input (t..

Compare this amount to the difference in the net incomes : How much fixed manufacturing overhead is in ending inventory under full costing? Compare this amount to the difference in the net incomes calculated in Exercises 8 and 9.

What amount for liability unearn service revenue will appear : The Joe & Einstein Cable Company collects all service revenue in advance. What amount for the liability unearned service revenue will appear on the balance sheet at June 30, 2009?

Quality of management information weighting : Due date 06 Jan 2015 - Tuesday of Week 9 at 5.00 PM (AEST) Quality of Management Information Weighting 20% Length 2,000 - 2,500 words (Approximately) Format Submit this assignment in a report format Amidst other problems, HIH (Heath International ..

What is the principle of charity : Write: Present a case, either in the media or in your own life, of a case in which someone interpreted another uncharitably, and answer the following questions: What is the principle of charity? What specifically did the first person say? In what w..

User Account

All Pages