Calculate the point of indifference for the following products: a) A i. Fixed costs = 2,070,550 ii. Variable costs = 54/item b) B i. Fixed costs = 5,275,000 ii. Variable costs = 45/item
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- 2) Indicate the type of cost which is not variable cost: a) Workers' wage. b) Material used in production. c) Accountant salary. d) Electricity consumed by the engine. 3) The relationship between price and demand can be expressed as a linear function. a) True b) FalseWhat is the wholesale cost of an item, if the retail cost is $62 and the amount of markup is $17? Use the formula R W + M (where R is the retail cost, W is the wholesale cost, and M is the amount of mark up). = The wholesale cost is dollars.A factory makes bicycle tires. The cost, C, in dollars and revenuue in dollars, R, are both functions of the number of tires, n.a) Describe what is meant by C'(4) = 8b) Generate a mathematical equation, using function notation, to model the following statements: for (b) + (c) "The marginal revune for 15 tires sold decreases by $1."c) "The revenue at 3 tires equals the change in cost at 5 tires"
- If you were a taxi driver, the daily revenue and cost are as the following: Revenue: $250 Variable cost (gas, your labor…): $190 Mortgage payment for car: $70 License Fee: $30 For profit maximization, will you operate your taxi business today? What is the minimum daily revenue to keep the operation in the short run? What is the minimum daily revenue to keep the operation in the long run? Please show calculation formula and/or equation.Suppose that the cost function for a commodity is C(x) = 40 + x2 dollars. (a) Find the marginal cost at x = 4 units. MC(4) = Tell what this predicts about the cost of producing 1 additional unit. The cost to produce the 5th unit is predicted to be $ (b) Calculate C(5) – C(4) to find the actual cost of producing 1 additional unit. Need Help? Read It Watch Itswered Costs per Unit (dollars) 1000 900 800 700 600 500 400 300 200 100 0 4 Average total cost B Marginal cost Output (units per day) Average variable cost Average fixed cost 22 24 How many units of output should be produced per day if the price of the product is $600/unit? (provide an approximate answer in whole numbers)
- What is the difference between a price analysis and a cost analysisAssume the cost of making 30 belts $800 the cost of makin 35 belts $900 and the cost equation is linear. The belts are sold for$ 27 each. a)find the marginal cost b)find a linear equation in slope-intercept, form that represent the total Cost of making will c) What is the fixed cost? d) find a profit in slope- intercept that will represent the profit if x belt are made and sold? e) Find the break even point?Cecil Green sells golf shirts. He knows that most people will not pay more than $40 for a golf shirt. Cecil needs a 35% markup on cost. What is the maximum Cecil should pay for his golf shirts? I need help working this problem out. I know the answer is $29.63 but I need it explain to me in detail how to come up with this answer so I know how to work it out on my midterm Tuesday. Please help
- (a) Find the marginal cost function C'(x). C'(x) Use it to estimate how fast the cost is increasing when x = 60,000. | per game system Compare this with the exact cost of producing the 60,001st game system. The cost is increasing at the rate of $ | game system is $| the estimated cost of producing the 60,001st game system found using the marginal cost function. | per game system. The exact cost of producing the 60,001st J. The actual cost of producing the 60,001st game system is --Select-- (b) Find the average cost function C(x) and the average cost to produce the first 60,000 game systems. (Round your answer to the nearest cent.) C(x) C(60,000) - $ (c) Using your answers to parts (a) and (b), determine whether the average cost is rising or falling at a production level of 60,000 game systems.What is relationship between total revenue (TR) and total variable cost (VC) if the price is less than AVC (is TR greater, less, or equal to VC)?Classify each individual element of cost according to its behavior pattern (fixed, variable, or semi-variable). b) Compute for: 1) total revenue at $63/u, 2) total variable costs, 3) total fixed costs, 4) total semi-variable costs 5) total cost & 6) profit per unit For: lower level, upper level and zero activity level. Lower Level Upper Level F,V,SV Production (units) 5,000 7,500 Manufacturing costs: Direct materials $50,000 $75,000 ______ Direct Labor 40,000 60,000 ______ Overhead: Indirect Labor 21,000 28,500 ______ Supplies 20,000 30,000 ______ Depreciation 12,000 12,000 ______ Distribution expenses:…
