Determine total cost of product, Macroeconomics

Assignment Help:

Pucker Lemonade, Inc., is a small company that produces bottled lemonade. Pucker's fixed cost includes the monthly rental cost of the lemon-smashing machines, the bottling machines, and the production plant. Pucker's variable cost is the cost of other inputs--lemons and other ingredients, maintenance of the machines, and wages for the workers who work at the plant. The following table shows Pucker's estimated cost for output, measured in truckloads of lemonade that the company produces each month.

Number of lemon-smashing machines

Fixed cost

Variable cost





















10 truckloads

20 truckloads

30truckloads



















4

$16,000

$5,000

$8,000

$34,000



















5

$22,000

$4,500

$6,000

$30,000



















6

$28,000

$3,500

$5,500

$29,000



















1. If Pucker uses four lemon-smashing machines, what is the total cost of producing 10 truckloads of lemonade per month?

2. The current lease on Pucker's lemon-smashing machines is about to expire and the manager needs to decide how many of these machines to lease for the coming month. If Pucker needs to produce 20 truckloads of lemonade, how many machines should the company lease in the long run?


Related Discussions:- Determine total cost of product

Assignment help, Consider the economic data for Country A: Unemployment lev...

Consider the economic data for Country A: Unemployment level of 15% Natural Rate of Unemployment is 6%. Required Reserves is 25% C = 50 + 0.75Y; I = 600; G = 250 (note: T = 200 for

Effect of distance on completed, From stock and watson 3rd edition introduc...

From stock and watson 3rd edition introduction to econometrics Using the data set CollegeDistance described, run a regression of years of completed education (ED) on distance to t

Subsidizing the price of milk, "Subsidizing the price of milk or other agri...

"Subsidizing the price of milk or other agricultural products is not very expensive considering how many consumers there are in the United States. Therefore, there is little harmfu

Describe about monetary policy, Q. Describe about Monetary policy? By m...

Q. Describe about Monetary policy? By monetary policy we mean policy directed at controlling the money supply and interest rates. In most nations, central bank is responsible f

What is the significance of foreign exchange rate risk, Foreign exchange ri...

Foreign exchange risk is the level of uncertainty that a company must handle for changes in foreign exchange rates that will unfavourably affect the money the company receives for

Aggregate supply in the short run, Aggregate Supply in the Short Run P...

Aggregate Supply in the Short Run Production takes place in business sector on the basis of an expected price for its output. However, costs are incurred in anticipation of sa

Microsoft and standard oil, In what major way do the Microsoft and Standard...

In what major way do the Microsoft and Standard Oil cases differ?

Influence the losing price bubble, What happened to the credit standards (e...

What happened to the credit standards (e.g., minimum down payment, mortgage loan relative to the value of the house, and creditworthiness of the borrower) between 1995 and 2005? Wh

Assignment, Consider the economic data for Country A: Unemployment level of...

Consider the economic data for Country A: Unemployment level of 15% Natural Rate of Unemployment is 6%. Required Reserves is 25% C = 50 + 0.75Y; I = 600; G = 250 (note: T = 200 for

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd