Bakery produces and sells grain bread. Monthly fixed costs are known, costs of raw materials and direct labour needed to bake one bread are given below as well. Calculate costs of raw material and direct labour needed to produce more pieces of bread. Then calcuate VC, TC, AC and MC. Quantity Fixed costs (EUR) Raw material costs (EUR) Direct labour costs (EUR) Variable costs (EUR) Total costs (EUR) Average costs (EUR) Marginal costs (EUR) 1 500.00 0.20 1.00 1.20 501.20 501.20 1.20 5 500.00 1.00 5.00 6.00 506.00 101.20 1.20 10 500.00 2.00 10.00 12.00 512.00 51.20 1.20 15 500.00 3.00 15.00 18.00 518.00 34.53 1.20 35 500.00 7.00 35.00 42.00 542.00 15.49 1.20 50 500.00 10.00 50.00 60.00 560.00 11.20 1.20 100 500.00 20.00 100.00 120.00 620.00 6.20 1.20 1,000 500.00 200.00 1,000.00 1,200.00 1,700.00 1.70 1.20 2,500 500.00 500.00 2,500.00 3,000.00 3,500.00 1.40 1.20 10,000 500.00 2,000.00 10,000.00 12,000.00 12,500.00 1.25 1.20
Bakery produces and sells grain bread. Monthly fixed costs are known, costs of raw materials and direct labour needed to bake one bread are given below as well. Calculate costs of raw material and direct labour needed to produce more pieces of bread. Then calcuate VC, TC, AC and MC. Quantity Fixed costs (EUR) Raw material costs (EUR) Direct labour costs (EUR) Variable costs (EUR) Total costs (EUR) Average costs (EUR) Marginal costs (EUR) 1 500.00 0.20 1.00 1.20 501.20 501.20 1.20 5 500.00 1.00 5.00 6.00 506.00 101.20 1.20 10 500.00 2.00 10.00 12.00 512.00 51.20 1.20 15 500.00 3.00 15.00 18.00 518.00 34.53 1.20 35 500.00 7.00 35.00 42.00 542.00 15.49 1.20 50 500.00 10.00 50.00 60.00 560.00 11.20 1.20 100 500.00 20.00 100.00 120.00 620.00 6.20 1.20 1,000 500.00 200.00 1,000.00 1,200.00 1,700.00 1.70 1.20 2,500 500.00 500.00 2,500.00 3,000.00 3,500.00 1.40 1.20 10,000 500.00 2,000.00 10,000.00 12,000.00 12,500.00 1.25 1.20
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Bakery produces and sells grain bread. Monthly fixed costs are known, costs of raw materials and direct labour needed to bake one bread are given below as well. Calculate costs of raw material and direct labour needed to produce more pieces of bread. Then calcuate VC, TC, AC and MC.
| Quantity | Fixed costs (EUR) | Raw material costs (EUR) | Direct labour costs (EUR) | Variable costs (EUR) | Total costs (EUR) | Average costs (EUR) | Marginal costs (EUR) |
| 1 | 500.00 | 0.20 | 1.00 | 1.20 | 501.20 | 501.20 | 1.20 |
| 5 | 500.00 | 1.00 | 5.00 | 6.00 | 506.00 | 101.20 | 1.20 |
| 10 | 500.00 | 2.00 | 10.00 | 12.00 | 512.00 | 51.20 | 1.20 |
| 15 | 500.00 | 3.00 | 15.00 | 18.00 | 518.00 | 34.53 | 1.20 |
| 35 | 500.00 | 7.00 | 35.00 | 42.00 | 542.00 | 15.49 | 1.20 |
| 50 | 500.00 | 10.00 | 50.00 | 60.00 | 560.00 | 11.20 | 1.20 |
| 100 | 500.00 | 20.00 | 100.00 | 120.00 | 620.00 | 6.20 | 1.20 |
| 1,000 | 500.00 | 200.00 | 1,000.00 | 1,200.00 | 1,700.00 | 1.70 | 1.20 |
| 2,500 | 500.00 | 500.00 | 2,500.00 | 3,000.00 | 3,500.00 | 1.40 | 1.20 |
| 10,000 | 500.00 | 2,000.00 | 10,000.00 | 12,000.00 | 12,500.00 | 1.25 | 1.20 |
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