2. You are the manager of production at a firm that sells high performance road bikes. Your firm has the following average-total-cost schedule: Quantity 548 Bikes 549 Bikes Average Cost $245 $246 Your current level of production is 548 bikes, all of which have been sold. Someone calls desperate to buy a bike for a local race. The caller offers $800 for the bike. Should you accept the offer? Why or why not? Show your calculations for full credit.
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- How does fixed cost affect marginal cost? Why is this relationship important?F a) Draw the demand process cycle and label it fully. b) A door company has the following materials in inventory. Inspect the table below and answer the following questions Material Average (in Kilograms) Price Aluminum 3884 $3.0 Steel 5850 $1.4 Iron 200 $1 Work in Progress Average Price Fence 78 230 Final Products Average Price Door 300 300 Window 550 240 i. Calculate the number of turns. ii. Calculate the cost per day.12 st L8 Get & Transform Data 4 6 7 1 2 Available Product 3 8 9 10 11 12 13 A 14 15 16 17 18 19 20 All :X ✓ fx B Pounds made Workbook Links Queries & Connections 3000 Flour (ounce) 1500 Egg (piece) 4500 Labor (man-hour) Unit Price Variable Cost Demand UCM Adiucted C 3.2 1.5 6 D $12.50 $6.50 960 $6.00 2.6 1.5 5 Data Types $11.00 $5.70 928 $5.30 E 1.5 1 4 <1 $9.00 $3.60 1041 $5.40 F 0 0 0 0 Banana Muffin Choc Muffin Banana Cookies Choc Cookies Milk Bread White Bread 0.7 0.3 0.5 0 2.5 1.5 $6.00 $3.00 $2.20 $1.20 1084 1055 $3.80 $1.80 AV 0 0.8 1 3 G $7.00 $2.80 977 $4.20 Sort & Filter H Advanced 0
- 3. A company in the US has traditionally been outsourcing toy production to Vietnam The table below shows the cost breakdown of its total landed cost on DDP Cost components $ $ $ $ $ $ $ Process Product price at factory Transport to port Customs clearance documentation at Vietnam port Ocean freight Insurance for ocean freight Customs duties at US port (assume 10% average) Inland trucking within US per trip $ 8,000 500 50 1,000 160 800 300 Total landed cost The company is looking into the use of robotics and automation to make the toys in the US. What is the maximum production price of the factory in order to be cost competitive with the import from Vietnam? ms. 10,810Q 0 1 3 5 7 9 11 15 17 Total Cost (TC) 1350 3200 4800 6900 9100 12350 18650 Total Fixed Cost (TFC) Total Variable Cost (TVC) 500 Average Total Cost (AC) 700 2. Plot the TC, TFC and TVC curves on a single diagram on another. cost of mountain bike production. Average Variable Cost (AVC) Average Fixed Cost (AFC) 200 220 Marginal Cost (MC) and plot the AC, AFC, AVC and MC curvesTeresa is a hard-working second-year university student. One Thursday, she decides to work nonstop until she has answered 100 practice problems for her physics course. She starts work at 8:00 AM and uses a table to keep track of her progress throughout the day. She notices that as she gets tired, it takes her longer to solve each problem. Time 8:00 AM 9:00 AM 10:00 AM 11:00 AM Noon Total Problems Answered 0 40 70 90 100 Use the table to answer the following questions. The marginal, or additional, gain from Teresa's second hour of work, from 9:00 AM to 10:00 AM, is The marginal gain from Teresa's fourth hour of work, from 11:00 AM to noon, is problems. problems. Later, the teaching assistant in Teresa's physics course gives her some advice. "Based on past experience," the teaching assistant says, "working on 35 problems raises a student's exam score by about the same amount as reading the textbook for 1 hour." For simplicity, assume students always cover the same number of pages during…
- EGR 116 Project 2 Controlling Motor Speed Word References Mailings Review View Help Tell me what you want to do AaBbCcDdE AaBbCcL AaBbC AAB6CCI AaBbCc) A 1 Caption Emphasis Heading 1 1 Normal Strong Paragraph Styles Beaverduck Bus Company wants to compute the cost of adding a third daily bus between Eugene and Corvallis, Oregon. Comment on the following statement of Abby Abacus, the company's accountant: "If we add the third bus, our total cost would increase form $700 to $780. Therefore, the marginal cost of the third bus is $260 ($780 divided by 3)."Text Entry Copy and paste or type your submission right here. HTML Editor В I A - I E E 3 E E X' X, =三 用▼ 12pt Paragraph Quantity Total Costs 20 10 1 30 12 2 42 13 55 20 4 75 25 100 30 16 ||130 128 words MacBook Pro 国 3.A computer company produces affordable, easyto-use home computer systems and has fixed costs of$250. The marginal cost of producing computers is $700for the first computer, $250 for the second, $300 for thethird, $350 for the fourth, $400 for the fifth, $450 for thesixth, and $500 for the seventh.a. Create a table that shows the company’s output,total cost, marginal cost, average cost, variablecost, and average variable cost.b. At what price is the zero-profit point? At whatprice is the shutdown point?c. If the company sells the computers for $500, is itmaking a profit or a loss? How big is the profitor loss? Sketch a graph with AC, MC, and AVCcurves to illustrate your answer and show theprofit or loss.d. If the firm sells the computers for $300, is itmaking a profit or a loss? How big is the profitor loss? Sketch a graph with AC, MC, and AVCcurves to illustrate your answer and show theprofit or loss.
- Done Save & Exit C Su Check my wStuey the VP for advertising at the Meg-low Mart is trying to sell Meg-Low Mart Body Spray for $1.99 per unit. His variable cost for each unit $0.75. Knowing their AED is .31 calculate the optimal amount that should be spent in advertising.1. Marginal revenue and its below average total cost? Take an example 2. How costs change when fixed and variable costs change ? Take an example 3. Graphical impact on cost changes on marginal and average costs?.Take an example