Consider the following cost information for a pizzeria: Quantity Total Cost Variable Cost 0 dozen pizzas $300 $ 0 1350 50 2 390 90 3420120 4 450 150 5 490 190 6 540 240 a. What is the pizzeria's fixed cost? b. Construct a table in which you calculate the marginal cost per dozen pizzas using the information on total cost. Also, calculate the marginal cost per dozen pizzas using the information on variable cost. What is the relationship between these sets of numbers? Explain.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Consider the following cost information for a
pizzeria:
Quantity Total Cost Variable Cost
0 dozen pizzas $300 $ 0
1350 50
2 390 90
3 420 120
4 450 150
5 490 190
6 540 240
a. What is the pizzeria's fixed cost?
b. Construct a table in which you calculate the
marginal cost per dozen pizzas using the
information on total cost. Also, calculate the
marginal cost per dozen pizzas using the
information on variable cost. What is the
relationship between these sets of numbers?
Explain.
Transcribed Image Text:Consider the following cost information for a pizzeria: Quantity Total Cost Variable Cost 0 dozen pizzas $300 $ 0 1350 50 2 390 90 3 420 120 4 450 150 5 490 190 6 540 240 a. What is the pizzeria's fixed cost? b. Construct a table in which you calculate the marginal cost per dozen pizzas using the information on total cost. Also, calculate the marginal cost per dozen pizzas using the information on variable cost. What is the relationship between these sets of numbers? Explain.
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