Process A has fixed costs of $10,000 and unit costs of $4.50 each, and Process B has fixed costs of $25,000 and unit costs of $1.50 each. At what level of annual production would the two processes have the same cost? (a) 50 units (b) 500 units (c) 5000 units (d) 50,000 units?
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Process A has fixed costs of $10,000 and unit costs of $4.50 each, and Process B has fixed costs of $25,000 and unit costs of $1.50 each. At what level of annual production would the two processes have the same cost? (a) 50 units (b) 500 units (c) 5000 units (d) 50,000 units?
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- Activity Rob Otics Ltd, a small business that specializes in manufacturing electronic- control equipment produces units as follows: No. of Units 100 Units 200 Units 300 Units You are required to calculate: (a) Find the variable cost per unit. (b) Find the Total Fixed cost. (c) Estimate the total cost if output is 250 units. (d) Estimate the total cost if output is 500 units. Total Costs (In Omani Rial) 5000 6000 7000When the production volume (Q)is 50 units the total costs (TC)is (1500)omani RIyals and fixed costs (900) Riyals, What is the Average Variable costs AVC ?MC $35 ATC AVC 15 10 500 Units of output Cost per unit ($)
- (9) The short run is a time period in which: (a) all resources are fixed. (b) the level of output is fixed. (c) the size of the production plant is variable. (d) some resources are fixed and others are variable.The total cost (in dollars) of manufacturing x auto body frames is C(x) = 80,000 + 900x. (A) Find the average cost per unit if 500 frames are produced. (B) Find the marginai average cost at a production level of 500 units. (C) Use the results from parts (A) and (B) to estimate the average cost per frame if 501 frames are produced. (A) If 500 frames are produced, the average cost is $per frame. (B) The marginal average cost at a production level of 500 units is $ (Round to the nearest cent as needed.) per frame. (C) Using the results from parts (A) and (B), the estimate of the average cost per frame if 501 frames are produced is $ (Round to the nearest cent as needed.)It costs a baker a fixed cost of $420 and variable cost of $2.10 per cupcake.A cupcake is sold for $4.90 each. (i) Make a table showing the cost of producing 20,40,60,80 and 100 cupcakes.
- Consider the accompanying breakeven graph for an investment, and answer the following questions.(a) Give the equation for total revenue for x units per year. (b) Give the equation for total costs for x units per year. (c) What is the “breakeven” level of x? (d) If you sell 1500 units this year, will you have a profit or loss? How much? (e) At 1500 units, what are your marginal and average costs?Suppose a company has fixed costs of $300 and variable costs of 3/4 x+1460 dollars per unit, where x is thetotal number of units produced. Suppose further that the selling price of its product is 1500−1/4 x dollars per unit.(a) Find the break-even points.(b) Find the maximum revenue.(c) Form the profit function from the cost and revenue functions and find maximum profit.(d) What price will maximize the profit?If JMJ Industries realizes a profit of $4.00 per unit sold, what is the fixedcost portion of their production costs? Their variable costs are $1.50 per unit, and they sell 1000 units per year at a price of $6.00 per unit. (a) There are no fixed costs in this type of problem. (b) $250 (c) $500 (d) $2000
- Solve the questions to find all these parts and show a clear working of how you obtained this question. (D,e, f) neededT/F The fixed cost remains same at all level of output.It costs a baker a fixed cost of $420 and variable cost of $2.10 per cupcake.A cupcake is sold for $4.90 each. (ii) Make a table showing the revenue from selling 20,40,60,80 and 100 cupcakes.