Estimate total cost n average total cost at projected volume

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Reference no: EM13239747

The St. Thomas Winery plans to open a new production facility in the Napa Valley of California. Based on information provided by the accounting department, the company estimates fixed costs of $250,000 per year and average variable costs of:

AVC=$10 +0.01Q

where AVC is average variable cost (in dollars) and Q is output measured in cases of output per year.

Estimate total cost and average total cost for the comping year at a projected volume of 4,000 cases.

Reference no: EM13239747

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