Below is the amount of labor employed by a starting business which makes bags out of recycled materials and the amount of output produced monthly. They rent out one building space which costs P5,000. A worker costs P10,000/month. The price of a bag is P80. Compute the costs incurred by the firm as well as its revenue and profit. Show all your solutions. How much bags should the business produce?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Below is the amount of labor employed by a starting business which makes bags out of recycled materials and the amount of output produced monthly. They rent out one building space which costs P5,000. A worker costs P10,000/month. The price of a bag is P80. Compute the costs incurred by the firm as well as its revenue and profit. Show all your solutions. How much bags should the business produce?

Exercise 2: Below is the amount of labor employed by a starting business which makes bags
out of recycled materials and the amount of output produced monthly. They rent out one
building space which costs P5,000. A worker costs P10,000/month. The price of a bag is P80.
Compute the costs incurred by the firm as well as its revenue and profit. Show all your
solutions. How much bags should the business produce?
Labor Output FC
vc
TC
MC
AC
TR
MR
Profit
1
100
2
250
3
450
4
600
700
Transcribed Image Text:Exercise 2: Below is the amount of labor employed by a starting business which makes bags out of recycled materials and the amount of output produced monthly. They rent out one building space which costs P5,000. A worker costs P10,000/month. The price of a bag is P80. Compute the costs incurred by the firm as well as its revenue and profit. Show all your solutions. How much bags should the business produce? Labor Output FC vc TC MC AC TR MR Profit 1 100 2 250 3 450 4 600 700
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