The variation of the total production cost with the production rate for a process is defined as follows. ALL = 2 000 000 + 4q + 2.5 q1.1 (ECU / year) q[=] kg / year a) Plot the change of total production cost according to the production speed. b) Find the annual fixed and variable costs for the case where the production rate is 2 000 000 kg / year. c) Find the average and interface costs for the same production capacity.
The variation of the total production cost with the production rate for a process is defined as follows. ALL = 2 000 000 + 4q + 2.5 q1.1 (ECU / year) q[=] kg / year a) Plot the change of total production cost according to the production speed. b) Find the annual fixed and variable costs for the case where the production rate is 2 000 000 kg / year. c) Find the average and interface costs for the same production capacity.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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![The variation of the total production cost with the production
rate for a process is defined as follows.
ALL = 2 000 000 + 4q + 2.5 q1.1 (ECU / year) q [=] kg / year
a) Plot the change of total production cost according to the
production speed.
b) Find the annual fixed and variable costs for the case where
the production rate is 2 000 000 kg / year.
c) Find the average and interface costs for the same
production capacity.
d) If the market selling price of the product is 20 ECU/ unit,
what should be the minimum production rate in order not to
damage the organization?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F25452d3b-6f5f-467c-b536-d720319f2903%2F242bf8b1-1f5b-4651-a887-a601a28b727f%2F2nmphwc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The variation of the total production cost with the production
rate for a process is defined as follows.
ALL = 2 000 000 + 4q + 2.5 q1.1 (ECU / year) q [=] kg / year
a) Plot the change of total production cost according to the
production speed.
b) Find the annual fixed and variable costs for the case where
the production rate is 2 000 000 kg / year.
c) Find the average and interface costs for the same
production capacity.
d) If the market selling price of the product is 20 ECU/ unit,
what should be the minimum production rate in order not to
damage the organization?
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