Reference no: EM132621769

Question - Suppose you are thinking of starting your own mountain bike company, "Dirt Lovers." You calculate that your initial costs for your plant and equipment will be $10,000. The wage is $15 per hour, and each bike requires $50 of materials. You determine that producing 5 bikes will require 15 hours of labor, 25 bikes will require 100 hours of labor, and 50 bikes will require 250 hours of labor. For each level of production, 5, 25, and 50 bikes, calculate the following: Total Fixed Cost, Average Fixed Cost, Total Variable Cost, Average Variable Cost, Average Total Cost, and Marginal Cost.