This discussion is related to Making a Decision, MAD 16-1 of your text (page 832). The text gives you company details and asks for your analysis about two items, 1) the labor cost per unit (one sports coat) and 2) the labor hours per unit. I have started you off by completing the calculations for you! Take a look at the following tables: Total Direct Labor Cost Direct Labor Cost/Unit Job Count 107 63.00 10 6.30 125 98.00 14 7.00 160 123.20 16 7.70 192 51.20 6.40 Total Direct Labor Direct Labor Job Count Hours Hours/Unit |107 4.5 10 .45 |125 7.0 14 .50 |160 8.8 16 .55 192 3.2 .40

Q: How does a cost behave in response to a change in activity? Give an example?

A: Cost also changes with the change in the activity. There are two types of costs- fixed costs and…

Q: What is marginal product, and what does it mean if it is diminishing?

A: The marginal product is determined by the change in total output as one additional input is used in…

Q: Give the formulas for and plot average fixed cost, AFC, marginal cost, MC, average variable cost,…

A: Marginal Cost: it refers to the change in total cost due to 1 additional unit of production. As due…

Q: What will be the marginal cost if the change in total cost is $55 and Change in quantity is $60.

A: Marginal cost determined to be a cost, which involves increase or decrease to the overall cost of…

Q: Use the following information: TFC = $300, and Plabor = $20/hour. Fill in the blanks in the…

A: Labor (hours)TP…

Q: What effect, if any, does diminishing marginal product have on the shape of the marginal cost curve?

A: According to the law of diminishing marginal returns, after a certain level adding additional units…

Q: Please define total cost, average total cost, and marginal cost. Explaine how these terms are…

A: Average Total Cost (ATC) shows the cost per unit of production and is calculated by dividing the…

Q: Show me how to arrive at Average Variable Cost?

A: Total variable cost varies with the level of production.

Q: What is the average product doing when the marginal product is decreasing? Why?

A: Average Product (AP): Average product represents the average output produced per unit of input. It…