### Question 1: Costs and Production#### Scenario:- Maria is starting a food ordering and delivery company.- Customers order meals online. Employees prepare the meals and deliver them.- Maintenance on the ordering system costs $5 per day.- Rent for the space where orders are prepared is $50 per day.- The business incurs other fixed costs that total $10 each day.#### Cost Table:The table below shows the costs associated with different numbers of workers and meals prepared:| Workers (Labor L) | Output Q | MPL | FC | Cost of Ingredients | VC | TC | AFC | AVC | ATC | MC | TR | Profit | Profit per Meal ||-------------------|----------|-----|----|---------------------|-----|------|------|------|------|-----|-----|--------|-----------------|| 0 | 0 | 0 | $65| $0 | $0 | $65 | | | | | | | || 1 | 30 | 30 | $65| $75 | $75 | $140 | $2.17| $2.50| $4.67| | | | || 2 | 80 | 50 | $65| $100 | $100| $240 | $0.81| $1.25| $3.00| | | | || 3 | 150 | 70 | $65| $121 | $121| $326 | $0.43| $0.81| $2.17| | | | || 4 | 180 | 30 | $65| $138 | $138| $366 | $0.36| $0.77| $2.03| | | | || 5 | 210 | 30 | $65| $158 | $158| $421 | $0.31| $0.75| $2.00| | | | || 6 | 230 | 20 | $65| $176 | $176| $471 | $0.28| $0.77| $

Fixed costs are that cost which remains same and incur even when there is no production.Variable…

Question 1: Costs and Production Suppose that Maria is starting a food ordering and delivery company. Customers order meals online. Employees prepare the meals and deliver them to customers. Maintenance of the online platform for ordering meals costs the company $5 per day. The company also rents space where orders are prepared. Rent costs $50 per day. To make the deliveries, the business also rents two delivery cars that cost $10 each per day. The costs of ingredients for preparing different numbers of meals are provided in the table below. Maria also has to hire between 0 and 10 workers (depending on the number of meals she chooses to make) to buy ingredients, prepare meals, and deliver the orders. She will pay each employee $120 per day. The first two columns of the table below show how many meals different number of workers can prepare and deliver. Workers Meals Cost of MPL FC VC TC AFC ONC ATC MC Profit per

Question 1: Costs and Production Suppose that Maria is starting a food ordering and delivery company. Customers order meals online. Employees prepare the meals and deliver them to customers. Maintenance of the online platform for ordering meals costs the company $5 per day. The company also rents space where orders are prepared. Rent costs $50 per day. To make the deliveries, the business also rents two delivery cars that cost $10 each per day. The costs of ingredients for preparing different numbers of meals are provided in the table below. Maria also has to hire between 0 and 10 workers (depending on the number of meals she chooses to make) to buy ingredients, prepare meals, and deliver the orders. She will pay each employee $120 per day. The first two columns of the table below show how many meals different number of workers can prepare and deliver. Workers Meals Cost of MPL FC VC TC AFC ONC ATC MC Profit per

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose that Maria is starting a food ordering and delivery company. Customers order meals online. Employees prepare the meals and deliver them to customers. Maintenance of the online platform for ordering meals costs the company $5 per day. The company also rents space where orders are prepared. Rent costs $50 per day. To make the deliveries, the business also rents two delivery cars that cost $10 each per day. The costs of ingredients for preparing different numbers of meals are provided in the table below. Maria also has to hire between 0 and 10 workers (depending on the number of meals she chooses to make) to buy ingredients, prepare meals, and deliver the orders. She will pay each employee $120 per day. The first two columns of the table below show how many meals different number of workers can prepare and deliver. Price per meal $50 Workers (Labor L) 0 1 2 3 4 5 6 7 8 9 10 Meals (Output Q) ol- 30 42 52 60 67 73 79 85 90 95 MPL FC Cost of ingredients $10 $75 $100 $121 $138 $152…
The table below describes the hourly cost Sam faces as he washes more cars. Sam's Car Wash Costs Cars Washed per Hour Total Cost (dollars) Marginal Cost (dollars) 1 $2 $2 2 4 3 12 4 8 5 10 6 42 Instructions: Enter your answers as a whole number. Complete the missing values in the table.
Variable costs are Multiple Choice costs that remain to be paid even if the firm shuts down temporarily. costs that change every day or every month. costs that change with the level of production. changes in total cost due to the production of an additional unit of output.
Use Excel to show formulas used Amazing is evaluating three locations for a second headquarters. Costs for construction at location A are $18,900,000, Location B are $21,700,000 and Location C are $23,300,000. Variable costs for Location A are $16, Location B are $14 and Location C are $12. The company plans to sell products for $27. Create a cost-volume graph that shows cost lines for all three options through 2,000,000 units.
Question 7 of 20 Total Total Average Average Average Fixed Variable Total Marginal Variable Fixed Cost $200 Output Total (Q) Cost Cost Cost Cost Cost Cost $0 $200 $200 $150 $350 40 $200 $250 $450 60 $200 $450 $650 80 $200 $800 $1,000 For the cost data shown above, what is this firm's Average Total Cost (ATC) when Output (Q) is 80? $12.50 $1,000 $11.25 O $10.83 20
Programmers Websites Marginal Product Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 0 0 - - 4000 - - - - 1 2 2 2000 6000 2 6 4 4000 8000 3 14 8 6000 10000 4 20 6 8000 12000 5 24 4 10000 14000 6 26 2 12000 16000 Webby pays $4,000 a month in rent for office space and equipment. It pays each programmer $2,000 a month. There are no other production costs. Fill in the rest of the columns.
You run a school in Florida. Fixed monthly cost is $5,837.00 for rent and utilities, $6,127.00 is spent in salaries and $1,459.00 in insurance. Also every student adds up to $103.00 per month in stationary, food etc. You charge $684.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,946.00, salaries to $6,128.00 and insurance to $2,040.00 per month. Variable cost per student will increase up to $166.00 per month. However you can charge $1,042.00 per student. How much do you currently charge per student? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
In 2011, Toni taught music and earned $20,000. She also earned $4,000 by renting out her basement. On January 1, 2012, she quit teaching, stopped renting out her basement, and began to use it as the office for her new Web site design business. She took $2,000 from her savings account to buy a computer. During 2012, she paid $1,500 for the lease of a Web server and $1,750 for high-speed Internet service. She received a total revenue from Web site designing of $45,000 and earned interest at 5 percent a year on her savings account balance. Normal profit is $55,000 a year. At the end of 2012, Toni could have sold her computer for $500. Calculate Toni's opportunity cost of production and her economic profit in 2012. 1.
Dexter set up a computer repair business out of his home office. Based on the square footage of his office, he allocates a fixed cost of $400 per month in mortgage expenses. He also has a monthly internet bill of $45 and a monthly phone bill of $35. While repairs vary greatly, Dexter estimates an average of $19 in expenses per repair and charges a flat $49 fee per repair for his labor. 3a. How many computers does Dexter need to repair each month to break even?__________3b. What is Dexter’s profit / loss if he only repairs 8 computers in a month?__________3c. What fee would Dexter need to charge to break even at 8 repairs?
Tammy quit her job as a math teacher making $70,000 per year to start her own online business. The first-year revenue totaled to $200,000. During the first year of online business, Tammy paid $50,000 for the office rent and $20,000 for utilities and supplies. What is the amount of accounting profit generated from Tammy’s online business? $60,000 $200,000 $130,000 $70,000