The total fixed cost is $60 per month. (a) If the price pervisit is $60,...

The total fixed cost is $60 per month. (a) If the price per visit is $60, at what level of visits will the maximum profit position be? (b) What are the profits at this level?(c) What is the quantity supplied? (d) If the total fixed cost increases to $80 and the price per visit is $60, what is the quantity supplied (assuming maximizing profits)?

quantity per visits supplied:1,2,3,4,5,6,

total variable cost: 20,50,90,140,210,290

Expert Solution

Answer.

Quantity	TR	MR	TVC	TFC	MC	TC	PROFIT =TR-TC	TC for TFC=80	Profits*
1	60	-	20	60	-	80	-20	100	-40
2	120	60	50	60	30	110	10	130	-10
3	180	60	90	60	40	150	30	170	10
4	240	60	140	60	50	200	40	220	20
5	300	60	210	60	70	270	30	290	10
6	360	60	290	60	80	350	10	370	-10

* Profit is maximum at 4 units per visit supplied and $40 is the profit. And, for TFC $80 profit is maximum at 4 units only.

Rahul Sunny answered 2 years ago

Variable cost per rosette $ 2.50 Sales price per rosette 6.00 Total fixed costs per month...

Variable cost per rosette $ 2.50 Sales price per rosette 6.00 Total fixed costs per month 7000.00 Required: 1. Suppose Dana’s would like to generate a profit of $1,140. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana’s sells 2,160 rosettes, compute its margin of safety in units, in sales dollars, and as a percentage of sales. 3. Calculate Dana’s degree of operating leverage if it sells 2,160 rosettes. 4a. Using the degree of...

Price (dollars per ride) (1) Quantity demanded (rides per month) (2) Total cost (dollars per...

Price (dollars per ride) (1) Quantity demanded (rides per month) (2) Total cost (dollars per month) (3) 220 0 80 200 1 160 180 2 260 160 3 380 140 4 520 120 5 680 Suppose you own Hot Air Balloon Rides during a local sports event in Vancouver, Canada, which is a singleprice monopoly (see Figure 1). Columns 1 and 2 of the following table set out the market demand schedule and columns 2 and 3 set out...

show the fixed cost are fixed in total but is variable on a per unit basis...

show the fixed cost are fixed in total but is variable on a per unit basis and that variable in total but is fixed on a per unit basis

Fixed cost is fixed in total but varies on a per-unit basis. Does this mean that...

Fixed cost is fixed in total but varies on a per-unit basis. Does this mean that as your sales increase, your contribution towards covering fixed costs and earning a profit increases? Beyond a range that sales and variable costs increase, fixed costs may change.

Item Cost Price Per Unit (RM) % of Cost to price Total (RM) Note Per Unit...

Item Cost Price Per Unit (RM) % of Cost to price Total (RM) Note Per Unit (RM) Total (RM) Food 18.72 40% 11,232.00 1 46.80 28,080.00 40% of RM 28,080 Beverage 1.30 26% 780.00 2 5.00 3,000.00 26% of RM3,000 Hall Rental 5.00 50% 3,000.00 3 10.00 6,000.00 50% of RM6,000 AV & Equipment 4.00 50% 2,400.00 4 8.00 4,800.00 50% of RM4,800 Carpark 2.10 70% 1,260.00...

Quantity Total Cost Total Fixed Cost Total Variable Cost Average Fixed Cost Average Total Cost Average...

Quantity Total Cost Total Fixed Cost Total Variable Cost Average Fixed Cost Average Total Cost Average Variable Cost Marginal Cost 0 30 1 75 2 150 3 255 4 380 5 525 6 680 7 840 8 1010 9 1200 Given the quantity and total cost, calculate for total fixed cost, total variable cost, average fixed cost, average total cost, average variable cost, and marginal cost. Excel formulas would be nice but not required.

An amusement park for kids faces a fixed cost of $ 300,000 per month and an...

An amusement park for kids faces a fixed cost of $ 300,000 per month and an average variable cost of $ 12 per visitor. It charges all visitors a flat entry fee of $29 for unlimited rides. This park’s capacity is 50,000 persons per month. a) What is the breakeven point for this park? What percentage of the capacity refers to this breakeven point? b) Because of the recent pandemic situation, the government lets the park authorities open the amusement...

Consider a price-taking firm that has total fixed cost of $50 and faces a marketdetermined price of $2 per unit for its output.

Consider a price-taking firm that has total fixed cost of $50 and faces a marketdetermined price of $2 per unit for its output. The wage rate is $10 per unit of labor, the only variable input. Using the following table, answer the questions below.(1) (2) (3) (4) (5) (6) Units of Marginal Marginal Marginal labor Output product revenue product cost Profit 1 5 2 15 3 30 4 50 5 65 6 77 7 86 8 94 9 98 10...

Labor Q Total Fixed Cost Total Variable Cost Total Cost Marginal Cost Average Fixed Cost Average...

Labor Q Total Fixed Cost Total Variable Cost Total Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost 0 0 25 0 1 4 25 25 2 10 25 50 3 13 25 75 4 15 25 100 5 16 25 125 (a) Complete the blank columns. (b) Assume the price of this product equals $10. What’s the profit-maximizing output (q)? Note: managers maximize profits by setting MR=MC and under perfectly competitive markets, MR=Price. Thus, maximize profit...

Fixed cost are constant on both the total cost and per unit cost basis True False

Question