For each level of output, calculate the variable cost (VC). For each level of output except zero output, calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC).

Qty of boats

Total Cost

Variable Costs

a.

Average Variable Costs

b.

Average Total Costs

c.

Average Fixed Cost

d.

0

$450,000

-

-

-

-

1

490,000

2

510,000

3

520,000

4

540,000

5

570,000

6

610,000

7

670,000

8

750,000

9

870,000

What is the minimum-cost output?

Question

contestada

Respuesta :

oreoluwa2001ng oreoluwa2001ng · Answer 1 · 2020-03-09T04:24:56+01:00

Answer:

Explanation:

QTY Total Cost Variable Cost AVC ATC AFC

0 $450,000 0 0 0 0

1 $490,000 $40,000 $40,000 $490,000 $450,000

2 $510,000 $60,000 $30,000 $225,000 $195,000

3 $520,000 $70,000 $23,333.33 $173,333.33 $150,000

4 $540,000 $90,000 $22,500 $135,000 $112,500

5 $570,000 $120,000 $24,000 $114,000 $90,000

6 $610,000 $160,000 $26,666.67 $101,666.67 $75,000

7 $670,000 $220,000 $31,428.57 $95,714.29 $64,285.72

8 $750,000 $300,000 $37,500 $93,750 $56,250

9 $870,000 $420,000 $46,666.67 $96,666.67 $50,000