Reference no: EM133172928
Question - Andoy owns a bakery somewhere in San Pablo City. He has a number of costs such as rent and the cost of purchasing machinery, and tills. He also has other costs such as staff wages, utility bills, and raw materials. In the first year of business, his total costs amount to 1,000,000, which include 800,000 of fixed costs and 200,000 of variable costs. He managed to sell 50,000 goods, making 2,000,000 in revenue. In the second year of business, total costs increase to 1,200,000, which include 850,000 of fixed costs and 350,000 of variable costs. He managed to sell 75,000 goods, making 3,000,000 in revenue.
Required -
1. What are the fixed costs involved with Andoy's bakery operation?
2. What are the variable costs involved with Andoy's bakery operation?
3. How much the fixed costs changed from its 1st year of operation to its 2nd year?
4. How much the variable costs changed from its 1st year of operation to its 2nd year?
5. How much the total costs changed from its 1st year of operation to its 2nd year?
6. How much the quantity sold changed from its 1st year of operation to its 2nd year?
7. How much the revenue changed from its 1st year of operation to its 2nd year?
8. What is the marginal cost of the bakery?
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