Hypothetical problem A corn farmer produces 300 sacks of corn at 50 kgs./sack. Prevailing price of corn/sack is P1,200. He incurred the following annual expenses (P): Fixed costs: land rent @5,000; irrigation fee@3,000; warehouse @2,500; insurance @3,000; interest on loan @4,200; entrepreneuship@7,000; salaries/wages@10,000; taxes@4,600; depreciation@2,600 • Variable costs: seeds@5,000; fertilizer@10,500: labor@18,000; pesticides@8,000; tractor@3,000; transportation,@3,500. Compute for: • 1. Total Cost, Total Fixed Cost, Total Variable Cost • 2. Average total cost, average fixed cost, average variable cost • 3. Total Revenue, average revenue 4. Total profit or Loss
Hypothetical problem A corn farmer produces 300 sacks of corn at 50 kgs./sack. Prevailing price of corn/sack is P1,200. He incurred the following annual expenses (P): Fixed costs: land rent @5,000; irrigation fee@3,000; warehouse @2,500; insurance @3,000; interest on loan @4,200; entrepreneuship@7,000; salaries/wages@10,000; taxes@4,600; depreciation@2,600 • Variable costs: seeds@5,000; fertilizer@10,500: labor@18,000; pesticides@8,000; tractor@3,000; transportation,@3,500. Compute for: • 1. Total Cost, Total Fixed Cost, Total Variable Cost • 2. Average total cost, average fixed cost, average variable cost • 3. Total Revenue, average revenue 4. Total profit or Loss
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
Problem 3MC
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