Total cost and average total cost of producing 5000 units

Related BrainMass Solutions

• Average total cost

  Here, I have considered original fixed cost of $5000. Average total cost is fully calculated.

• Avoidable and unavoidable costs

  Number of Units = 5000 Total Fixed Cost = 300,000 Average Fixed Costs = 300,000/5000 = 60 Total Variable Cost = 150,000 Marginal Cost = 150,000/5000 = 30 Average Total Cost = 450,000/5000 = 90 Marginal Revenue = 40 (a) In the short run company

• Calculating EOQ and total inventory cost in the given case

  We got one feasible solution of 141 units per order. But this is not in the lowest price range. We will check total cost at order quantity of 141 units and minimum quantity needed for minimum price i.e. 200 units.

• Inventory management

  Option 1: Total inventory holding cost = (P-D)*Q1*I1/2*P = (9000 - 5000)*707.1068*4.5/2*9000 = $707.1068 Total ordering cost = Number of production lots*S1 = 7.071*100 = $707.1 (Note that total inventory holding and ordering costs are same thus

• Calculating optimal output level

  b) At the profit-maximizing output rate, what are the monopolist's average total cost and average revenue?

• marginal cost

  Average total cost of producing 100 units = Total costs of 100 units/100 units = $10,000/100 = $100 c. What is the firms average total cost of producing 101 units?

• Determining profit maximizing output level

  Total Profit =Average profit*quantity sold=1*9000=$9000 (2) Global Marketing Group operates in a monopolistic competitive industry with the following Cost and Revenue data: Average Total Cost = $5.00; Quantity sold = 5000 Units; Price Per Unit

• Total/Average Costs

  389097 Total/Average Costs Fixed Costs: $250,000 Average Variable Costs: $10 + .01Q Projected annual volume: 4,000 units I. Estimate total cost and average total cost II.

• Managerial Economics - El Dorado Star

  As we can see from the table, producing the 5000th unit will generate a MR of 200/thousand units (or 0.2/unit), but incurs a cost of 180/thousand units (or 0.18/unit), so the firm can still produce a bit more until MR = MC.