Question

You are the CEO of a vacation cruise company that provides cruise service between Seattle WA to Anchorage AK. To provide this service, you use two inputs: ships and attendants. The table below describes the combinations of inputs required to produce cruises service. Assume that a ship costs $1 million dollars and that each attendant costs $1,000. The ship can make multiple cruises (and note that currently, your company owns only one ship).

Fill in the remaining columns.

This is per cruise ATC and MC:

Ships	Attendants	Cruises	TC	TFC	TVC	ATC	MC
1	100	1
1	200	2
1	300	3
1	400	4
1	500	5
1	600	6
1	700	7
1	800	8
1	900	9
1	1000	10

Answer 1

As per the question, to provide cruise service between Seattle WA to Anchorage AK, two inputs are required they can be classified as

Fixed Input =Ship

Cost of one ship = $1million = $1000000

Therefore the total fixed cost (TFC) = number of ship x Cost of one ship = 1x 1000000 = $1000000

Variable input = Number of Attendant

Cost of each attendant = $1000

Total variable cost (TVC) = Number of Attendant x Cost of each attendant = Number of Attendant x $1000

Output = Number of Cruise service

Ships (Fixed Input)	Attendants (Variable input)	Cruises	TC in $ = TFC + TVC	TFC in $	TVC in $= Number of attendants x $1000	ATC in $ = TC / Cruises	MC in $ = Change in TC / Change in Cruises
1	100	1	1100000	1000000	100000	1100000
1	200	2	1200000	1000000	200000	600000	100000
1	300	3	1300000	1000000	300000	433333.33	100000
1	400	4	1400000	1000000	400000	350000	100000
1	500	5	1500000	1000000	500000	300000	100000
1	600	6	1600000	1000000	600000	266666.67	100000
1	700	7	1700000	1000000	700000	242857.14	100000
1	800	8	1800000	1000000	800000	225000	100000
1	900	9	1900000	1000000	900000	211111.11	100000
1	1000	10	2000000	1000000	1000000	200000	100000