Question

Total Costs and Total Revenue Statement Worksheet 5.15.5 Imagine you are the accountant for a firm that makes handmade shoes. The production process is slow but precise. You begin to prepare the data on the fixed and variable costs of production. The owner wants a worksheet with that information to determine how many handmade shoes should be produced daily. He wants to find the cost minimizing quantity, which results in the highest profit. Complete this table and then answer the questions. Use the data given to fill in the blanks. Output Fixed Costs Variable Costs Total cost Marginal costs Price of product Total Revenue Profit 0 $108 $0 1 12 12 100 2 48 100 3 108 216 100 4 192 300 100 5 408 100 6 540 100 7 696 100 8 876 100 9 972 100 10 1200 100 $0

          Total Costs and Total Revenue Statement Worksheet 5.15.5
Imagine you are the accountant for a firm that makes handmade shoes. The production process is slow but
precise. You begin to prepare the data on the fixed and variable costs of production. The owner wants a
worksheet with that information to determine how many handmade shoes should be produced daily. He wants
to find the cost minimizing quantity, which results in the highest profit. Complete this table and then
answer the questions. Use the data given to fill in the blanks.
Output Fixed Costs Variable Costs Total cost Marginal costs Price of product Total Revenue Profit
0
$108
$0
1
12
12
100
2
48
100
3
108
216
100
4
192
300
100
5
408
100
6
540
100
7
696
100
8
876
100
9
972
100
10
1200
100
$0

Show more…

Total Costs and Total Revenue Statement Worksheet 5.15.5
Imagine you are the accountant for a firm that makes handmade shoes. The production process is slow but
precise. You begin to prepare the data on the fixed and variable costs of production. The owner wants a
worksheet with that information to determine how many handmade shoes should be produced daily. He wants
to find the cost minimizing quantity, which results in the highest profit. Complete this table and then
answer the questions. Use the data given to fill in the blanks.
Output Fixed Costs Variable Costs Total cost Marginal costs Price of product Total Revenue Profit
0
1080
1
12
12
100
2
48
100
3
108
216
100
4
192
300
100
5
408
100
6
540
100
7
696
100
8
876
100
9
972
100
10
1200
100
0

Added by John J.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Shu Naito

10/14/2024

Step 1

The table includes columns for Output, Fixed Costs, Variable Costs, Total Cost, Marginal Costs, Price of Product, Total Revenue, and Profit. ** Show more…

Show all steps

lock

Thanks for your feedback!

Total Costs and Total Revenue Statement Worksheet 5.15.5 Imagine you are the accountant for a firm that makes handmade shoes. The production process is slow but precise. You begin to prepare the data on the fixed and variable costs of production. The owner wants a worksheet with that information to determine how many handmade shoes should be produced daily. He wants to find the cost minimizing quantity, which results in the highest profit. Complete this table and then answer the questions. Use the data given to fill in the blanks. Output Fixed Costs Variable Costs Total cost Marginal costs Price of product Total Revenue Profit 0 $108 $0 $0 1 12 12 100 2 48 100 3 108 216 100 4 192 300 100 5 408 100 6 540 100 7 696 100 8 876 100 9 972 100 10 1200 100

Play audio

Feedback

Powered by NumerAI

Shu Naito and 96 other subject Microeconomics educators are ready to help you.

Ask a new question

Labs

Want to see this concept in action?

NEW

Explore this concept interactively to see how it behaves as you change inputs.

View Labs

Key Concepts

Recommended Videos

Recommended Textbooks

Transcript

00:01 Okay, so here fixed cost is 108, and we can derive the variable cost and total cost from these.

00:08 So the variable cost, excuse me, total cost is equal to fixed cost plus the variable cost.

00:16 So we can go from the first few entry of the total cost.

00:23 So at output 0, this is 108, and output 1 .1, this is 1 .8.

00:34 Is equal to 108 plus 12.

00:40 Let me do this vertically here.

00:43 0108.

00:44 So this is the output and total cost.

00:52 0, we have 108 and 1.

00:56 We have a variable cost of 12 here, so 1 .08 plus 12, 120.

01:03 2.

01:04 We have a variable cost of 12 here, so 1 .0 .2.

01:05 We have a variable cost of 48, which gives 150.

01:17 At output 3, this is, oh, you already have this one, so you don't need this one here.

01:31 And all the way up to output 9, you have the variable cost of 972.

01:43 So you obtain a 1 .80, and at output 10, you have the variable cost of a...

01:57 1200, so 1 -2, excuse me, 1 -308.

02:08 Okay, now you can do the variable cost.

02:13 So from this formula, you can see that the variable cost is equal to total cost minus the fixed cost...

Ace is your personal tutor. It breaks down any question with clear steps so you can learn.

Start Using Ace

Continue solving this problem

Create a free account to:

View full step-by-step solution
Ask follow-up questions with Ace AI
Save progress and study later