4. (6 points) Suppose you want to open a food truck in Providence that sells fancysandwiches to hipsters. Which of the following are fixed costs and which are variablecosts? (1 point each)(a) $20,000 for the truck(b) $3,000 for equipment (refrigerator, stove, oven, etc.)(c) $300 per year for a food truck permit from the city(d) $15 per hour for 3 employees(e) $0.10 per meal for utensils, napkins, and plates(f) $3 per sandwich for food costs1

To effectively understand the fixed and variable costs associated with opening a food truck in…

Answered: 4. (6 points) Suppose you want to open…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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• Total revenue $ 500,000• Wages and salaries $ 40,0000• Forgone salary $ 80,000• Interest paid $ 10,000• Forgone rent $ 10,000• Raw materials $ 50,000• Other payments $ 20,000• Forgone interest $ 7,000 ABC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total variable cost is $15000 per day. Calculate the average fixed cost, average variable cost, average total cost and total cost at the current output level.
3. Consider the following table: (1) (2) (3) (4) (5) (6) (7) (8) OUTPUT FC VC TC AFC AVC ATC MC 5000 5000 10 5000 (a) 7000 500 200 (b) 200 25 (C) 6000 (d) 200 (e) 440 (A 45 5000 (a) 14000 111 200 (h) 150 58 5000 12000 (i) 86 () 293 (k) 65 5000 (L) 20000 (m) 231 308 429 (n) 5000 18000 23000 71 257 329 (0) (i) List down only the formula that you would need to figure out the values in column 4-8. (ii) Copy the table on paper and fill in the blanks from (a) to (0). Show your calculation in the answer sheet.
IceLess is an anti-icing solution sold in gallon plastic jugs. It is poured into the windshield washer bottle of your car. Wash your windshield and the solution prevents the glass from icing over for about four hours. Production incurs the following fixed and variable costs. It is priced initially at $5.50 per gallon. 1. Fixed costs (per year) Rent Utilities Managerial salaries Flammability permit Other fixed expense Total fixed $18000 13200 20000 12000 2400 $65600 Variable Costs per gallon Glycol FreezeFree 312 Mfg labor Packaging Inert ingredients Advertising Total $1.50 .50 .20 .20 .60 .30 $3.30 What is the annual breakeven production quantity (use above data, show work)? 2. What revenue would the sale of the breakeven quantity for $5.50 per gallon generate? 3. The production department says 29000 gallons is its maximum production capability. Management insists on earning $94400 above fixed costs. All costs are as given initially. What price must be charged per gallon if only 29000…
Question 1! RUSTIC CABIN-Cost breakdown for 2,000ft2 cabin. Estimate: $250,000. COST ITEMS PERCENT OF TOTAL COST 1. Construction permits, legal, and title fees 2. Roadway, site clearing and preparation 15 3. Foundation, concrete and masonry 13 4. Wallboard, carpentry, and flooring 12 5. Heating, ventilation, air conditioning (HVAC) 13 6. Electric, plumbing and communications 10 7. Roofing and flooring 12 8. Painting and finishing 17 100 What is the price per sq. ft. of the 2,000ft? cabin? $100 $150 $125 $135
Subject : Engineering Economics Please write handwritten Answer And Explain Briefly
Output (unit) Total cost (RM) Total fixed cost (RM) Total variable cost (RM) Average fixed cost (RM) Average variable cost (RM) Average total cost (RM) Marginal cost (RM) 0 600 600 - - - - - 10 1050 600 450 60 45 105 45 20 1450 600 850 30 42.5 72.5 40 30 1800 600 1200 20 40 60 35 40 2100 600 1500 15 37.5 52.5 30 50 2450 600 1850 12 37 49 350 60 2850 600 2250 10 37.5 47.5 40 70 3300 600 2700 8.57 38.57 47.14 45 80 3850 600 3250 7.5 40.625 48.125 55 90 4500 600 3900 6.67 43.34 50 65 100 5250 600 4650 6 46.5 52.5 75 Which time period is the firm operating? Why?
None
don't use Al bot or chat GPT otherwise downvote.correct answer will get instant upvote show calculation
The marginal cost (MC) curve of a supplier will intersect the average total cost (ATC) curve: (a) at the ATC's minimum point. (b) as the ATC is decreasing. (c) as the ATC is increasing. (d) None of the above.
An assembly line can produce 80 units per hour. The line's hourly cost is $4250 on straight time (the first 8 hours). Workers are guaranteed a minimum of 5 hours. There is a 35% premium for overtime, however, productivity for overtime drops by 10%. What are the average and marginal costs per unit for the following daily quantities? (a) 350 (b) 500 (c) 640 (d) 850
2. A local company assembling stereo cassettes produces 300 units per month at a cost of P 800 per unit. Each stereo radio cassette sells for P 1,200. If the firm makes a profit of 10% on its 1,000 shares with a par value of P 200 per share, and the fixed costs are P 20 million per month. (a) What is the break-even point? (b) How must is the loss or profit if only 100 units are produced in a given month? Answer: [(a) 50 units per month; (b) P 3,300 per month]

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