1. Quiz Company incurred costs of $225,000 to produce 50,000 units. The total cost included fixed costs of $100,000.
Determine the total cost to produce 80,000 units.
Note: Give your answer using dollar signs and commas but no decimal points (cents).
2. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Determine the total cost to produce 10,000 units.
3. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Determine the variable cost to produce 10,000 units.
4. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Determine the fixed cost to produce 10,000 units.
5. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units. Total cost will
| a. |
Increase |
|
| b. |
Decrease |
|
| c. |
Remain unchanged |
|
| d. |
(This is an incorrect answer because Blackboard requires a minimum of four choices.) |
6. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units. Fixed cost will
| a. |
Increase |
|
| b. |
Decrease |
|
| c. |
Remain unchanged |
|
| d. |
(This is an incorrect answer because Blackboard requires a minimum of four choices.) |
7. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units. Variable cost will
| a. |
Increase |
|
| b. |
Decrease |
|
| c. |
Remain unchanged |
|
| d. |
(This is an incorrect answer because Blackboard requires a minimum of four choices.) |
8. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units. Variable cost per unit will
| a. |
Increase |
|
| b. |
Decrease |
|
| c. |
Remain unchanged |
|
| d. |
(This is an incorrect answer because Blackboard requires a minimum of four choices.) |
9. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units. Fixed cost per unit will
| a. |
Increase |
|
| b. |
Decrease |
|
| c. |
Remain unchanged |
|
| d. |
(This is an incorrect answer because Blackboard requires a minimum of four choices.) |
10. Quiz Company derived the following cost formula for the monthly production of its product.
Cost = $5.50 x Number of units + $25,000
Suppose production increases from 10,000 units to 15,000 units. Total cost per unit will
| a. |
Increase |
|
| b. |
Decrease |
|
| c. |
Remain unchanged |
|
| d. |
(This is an incorrect answer because Blackboard requires a minimum of four choices.) |
In: Accounting
Unit 9— Cost, Revenue, and Profit
The table shows the quantity produced and the total, average, variable, cost, and marginal costs for a firm. Complete the table.
Quantity | Total Cost | Variable Cost | Fixed Cost | Average Total Cost | Average Variable Cost | Average Fixed Cost | Marginal Cost |
0 | 0 | N/A | N/A | N/A | N/A | ||
1 | 100 | 50 | 50 | ||||
2 | 95 | ||||||
3 | 180 | 130 | 35 | ||||
4 | 50 | 20 | |||||
5 | 225 | 175 | 10 | 25 | |||
6 | 261 | 211 | |||||
7 | 49 | ||||||
8 | 385 | 335 | |||||
9 | 450 | ||||||
10 | 685 | 5 | 185 |
Graph the total cost, variable cost, and fixed cost curves.
Assume the price is $50, draw the total revenue curve and identify the profit maximizing output level and the maximum profit
Graph the average total cost, average variable, average fixed, and marginal cost curves
Assume the price is $50, draw the marginal revenue curve and identify the profit maximizing output level and shade in the total profit.
In: Economics
Output (units per day) | Total fixed cost (dollars) | Total variable cost (dollars) | Total cost (dollars) |
0 | 20 | 0 | 20 |
4 | 20 | 25 | 45 |
9 | 20 | 50 | 70 |
13 | 20 | 75 | 95 |
16 | 20 | 100 | 120 |
18 | 20 | 125 | 125 |
a) From the above table, what is the average total cost of producing 13 units? Show your steps.
b) From the above table, calculate the average total variable cost of producing 9 units of output. Show your steps.
c) Using the data in the above table, when output increases from 9 to 13 units, Calculate the marginal cost of one of those 4 units. Show your steps
In: Economics
Given a perfectly competitive market structure at the profit-maximizing output level, a firm’s total fixed cost is $32, total variable cost is $174, marginal revenue is $6.60, and the quantity demanded is 38 units. Calculate the firm's profit at the profit-maximizing output level. Show your work. Show your work.
(Show your work to earn credits. No Work, No Credit.)
In: Economics
Consider a perfectly competitive market in which each firm's short-run total cost function is C = 64 + 6q + q2, where q is the number of units of output produced.
The associated marginal cost curve is MC = 6+ 2q.
In the short run each firm is willing to supply a positive amount of output at any price above ___.
If the market price is $30 each firm will produce ____ units in the short-run.
Each firm earns a profit of ___.
Suppose the short-run cost function given above is the one that all firms would use in the long-run, because the corresonding SAC curve is tangent to the LAC curve at the minimum point on the LAC curve. In the long run, each firm will produce ___ units.
In: Economics
Given the following:
| Number purchased |
Cost per unit |
Total | ||||
| January 1 inventory | 40 | $ | 4 | $ | 160 | |
| April 1 | 60 | 7 | 420 | |||
| June 1 | 50 | 8 | 400 | |||
| November 1 | 55 | 9 | 495 | |||
| 205 | $ | 1,475 | ||||
a. Calculate the cost of ending inventory using
the LIFO (ending inventory shows 61 units).
Cost of ending inventory
$
b. Calculate the cost of goods sold using the LIFO
(ending inventory shows 61 units).
Cost of goods sold
$
In: Accounting
Consider a firm with total costs represented by TC=16+Q^2 and a corresponding marginal cost of 2Q (MC=2Q)
1). Graph the ATC and MC, be certain to label the lowest point of the ATC.
Consider that firm faces a price of 12$.
2). Find the optimal quantity.
3). Graph and find the total cost, total revenue, and any profit or loss at the optimal quantity.
In: Economics
Consider a firm with total costs represented by TC=16+Q^2 and a corresponding marginal cost of 2Q (MC=2Q)
1. Graph the ATC and MC, be certain to label the lowest point of the ATC.
Consider that firm faces a price of 12$.
2. Find the optimal quantity.
3. Graph and find the total cost, total revenue, and any profit or loss at the optimal quantity.
In: Economics
Calculate average total cost, what is the most efficient (minimum ATC) output quantity given the costs below? What should be the cost to produce 900 units?
Average Total Average
Variable Step Fixed Total
Output Cost Cost Cost Cost
0 $ 0 $50,000 $500,000 _________
150 1,000 100,000 500,000 _________
300 950 100,000 500,000 _________
450 1,000 100,000 500,000 _________
600 1,200 200,000 500,000 _________
750 1,500 200,000 500,000 _________
900 1,800 300,000 500,000 _________
In: Accounting
Let a perfectly competitive firm's short-run total cost function be;
C(p) = 100q - 4q2 + 0.2q3 + 450
a) Find the Marginal Cost (MC), Variable Cost (VC) and Average Variable Cost (AVC)?
b) Suppose the Market Price is P = $100, what would be the profit-maximizing quantity?
c) Now suppose Average Total Cost (ATC) = $116 at the profit-maximizing quantity. Is this firm making a loss, profit or breakeven?
d) Should the firm shut down or continue to produce? Explain in detail.
In: Economics