Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled...

Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month.

Answer the following questions:

A) What is the marginal cost of creating the tenth instructional module in a given month?

B) What is the average variable cost for the month if six instructional modules are produced?

C) What is the average fixed cost for the month if nine instructional modules are produced?

D) How many instructional modules are produced when the marginal cost is $1300?

E) One month, Teacher's Helper produced 18 instructional modules. What was the average fixed cost for that month?

Solutions

Expert Solution

Q	FC	VC	TC=FC+VC= ATC(Q)	AFC=FC/Q	AVC=VC/Q	ATC=TC/Q	MC=Change in TC
0	(600+480)=1080	0	1080	-	-	-	-
1	1080	400	(1080+400)=1480	1080	400	1480	(1480-1080)=400
2	1080	850	(965)(2)=1930	540	425	965	(1930-1480)= 450
3	1080	1350	2430	360	450	810	(2430-1930)=500
4	1080	1900	(1080+1900)=2980	270	475	745	(2980-2430)=550
5	1080	2500	(1080+2500)=3580	216	500	716	(3580-2980)=600
6	1080	(4280-1080)=3200	4280	180	533.33	713.3	700
7	1080	4100	(1080+4100)=5180	154.3	585.7	740	(5180-4280)=900
8	1080	5400	(1080+5400)=6480	135	675	810	(6480-5180)=1300
9	1080	7300	(1080+7300)=8380	120	811.1	922.2	(8380-6480)=1900
10	1080	(10880-1080)=9800	10880	108	980	1088	(10880-8380)=2500

(a) Marginal cost of creating the 10th instructional module = $2500.

(b) Average variable cost if six instructional modules are produced = $533.33.

(d) When marginal cost = $1300 , then we can see from the above table that 8 instructional modules are produced.

(e) If 18 instructional modules are produced , then average fixed cost = 1080/18= $60.

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

“Stand-Up” is a small company that has a subcontract to produce instructional materials for disabled children...

“Stand-Up” is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $500 a month and has leased computer equipment that costs $300 a month. Below is the structure of the company’s operational cost. Output (Instructional Modules per Month) Fixed Costs Variable Costs Total Cost 0 800 1 800 400 1480 2 1930 3 1350 2430 4 1900...

In a small group, debate the question, “Who is responsible for the care of severely disabled...

In a small group, debate the question, “Who is responsible for the care of severely disabled individuals?” Does the debate bring the group closer to or more distant from support of genetic research?

I run a small art firm. in the first year I hired one helper at 12,000...

I run a small art firm. in the first year I hired one helper at 12,000 per year, paid annual rent of $5,000 for the shop, and spent $20,000 on materials. I have $40,000 of my own funds invested in equipment that could earn 4,000 per year if alternatively invested. I had been offered $15,000 per year to work as a artist for a competitor. I estimate my entrepreneurial talents are worth $3,000 per year. total annual revenue from art...

Review the YouTube video "An Update on Adult Immunizations," featured in the Instructional Materials, and list...

Review the YouTube video "An Update on Adult Immunizations," featured in the Instructional Materials, and list two common misconceptions about adult vaccinations. How can you help address these misconceptions? Also list two illnesses that these immunizations aim to prevent. Do you feel the immunizations are accomplishing this goal? Why or why not? If not, what is your solution?

A company is analyzing three external providers to subcontract the service of maintenance for their installations...

A company is analyzing three external providers to subcontract the service of maintenance for their installations and equipment. Provider A offers a service through subcontracts that renews every single year, with a cost of $200,000 at the beginning of each year. Provider B offers a service with contracts that renew every two years, through four $150,000 payments. The first one is done today and the other remaining three in intervals of six months each. Provider C offers a service with...

Andy runs a small pottery firm. in her first year she hired one helper at 12,000...

Andy runs a small pottery firm. in her first year she hired one helper at 12,000 per year, paid annual rent of $5,000 for her shop, and spent $20,000 on material. she has 40,000 of her own funds invested in equipment that could earn her $4,000 per year if alternatively invested. she had been offered $15,000 per year to work as a Potter for a competitor she estimates her entrepreneurial talents are worth $3,000 per year. total annual revenue from...

It has been quite difficult if not impossible to produce nanoparticles from organic materials (especially for...

It has been quite difficult if not impossible to produce nanoparticles from organic materials (especially for medicine) like Ibuprofen, aspirin, etc. since they aggregate at normal conditions. Propose a possible method of producing nano ibuprofen and nanoaspirin and explain why that is more feasible than other methods. Please be as much quantitative in your proposal as possible.

A company blends two materials: A and B to produce two types of fertilizers. Fertilizer 1...

A company blends two materials: A and B to produce two types of fertilizers. Fertilizer 1 must be at least 50% of A and sells for $65 per kilo gram. Fertilizer 2 must be at least 70% of B and sells for $48 per kilogram. The price of martial A is $10 per 100 kilo grams and the price of martial B is $14 per 100 kilo grams if they purchased over 10,000 kilo gram the price will be reduced...

A company blends two materials: A and B to produce two types of fertilizers. Fertilizer 1...

Titus Company purchased on account and used 650 pounds of tomatoes (direct materials) to produce a...

Titus Company purchased on account and used 650 pounds of tomatoes (direct materials) to produce a taco sauce with a 635 pound standard direct materials requirement. The standard materials price is $22.40 per pound. The actual price of the tomatoes was $22.20 per pound. Titus records standards and variances in the general ledger. 1. Prepare the journal entry to record the purchase of the tomatoes on account. If an amount box does not require an entry, leave it blank. 2....

Subjects