4. (6 points) Suppose you want to open a food truck in Providence that sells fancysandwiches to hipsters. Which of the following are fixed costs and which are variablecosts? (1 point each)(a) $20,000 for the truck(b) $3,000 for equipment (refrigerator, stove, oven, etc.)(c) $300 per year for a food truck permit from the city(d) $15 per hour for 3 employees(e) $0.10 per meal for utensils, napkins, and plates(f) $3 per sandwich for food costs1

To effectively understand the fixed and variable costs associated with opening a food truck in…

Answered: 4. (6 points) Suppose you want to open…

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

The diagram illustrates isoprofit curves and the marginal cost curve of MQ2020, a luxury car manufactured by MQ Motors. Which statement incorrectly describes the diagram? 10,000 9,000 8,000- 7,000- 6,000- 5,000- 4,000 3,000 2,000 1,000 Price, marginal cost (5) C(8,7500) *A (35,6000) (40, 3300) Profit-QP-AC) Marginal cost hoprofit curve $150,000 boprofit curve $70,000 Zenic procure (AC 0 0 10 20 30 40 50 60 70 80 90 100 110 120 Quantity of cars, Q Select one Oa if the price is equal to the average cost, MQ Motors' profits decrease until it sells 40 cars, and then start to increase. Ob Given the same quantity of cars, MQ Motors" profits increase as price increases. OC The shape of MQ Motors' cost function affects the shape of their isoprofit curves Od. MQ Motors incurs increasing marginal cost Oe It MQ Motors sells 35 cars at P-$5,000, it makes profits higher than $70,000.
300 250 200 150 100 50 $ TC 30. The minimum Average Variable Cost is (a) $4 (b) $5 (c) $10 (d) $12 TVC TFC 0 Q 0 2 4 6 8 10 12 14 16 18 20 30 25 20 15 10 5 SA $ 0 0 2 4 6 8 10 12 14 16 18 20 MC AC AVC AFC Q
The figure below shows graphs of the fixed cost function, total cost function and the total revenue function for a certain commodity. 20 8000 7000 6000 5000 4000 Dollars ($) 3000 2000 1000 -10 -1000+ 10 20 30 40 Units (a) What is the break-even point? (x,y) e.g. (295,7650) (b) What are the fixed costs? $ TR Percent of capacity= 50 60 TC If the selling price per unit is $50, and the variable cost per unit is $40: FC 70 80 90 100 enter the answer in the form (c) If the maximum production capacity of the commodity is 110, express the break-even units as a percent of capacity? % (round to two decimal places if necessary)
(c) What is the cost of the 4,098th tux? (d) What is the variable cost? LA What is the fixed cost? $ What is the marginal cost? ta
When the production volume (Q)is 50 units the total costs (TC)is (1500)omani RIyals and fixed costs (900) Riyals. Calculate the Average Variable costs AVC ?
Tandem Bikes manufactures exercise bicycles built for two. It sells a cycle for $196 (custom painted in your color choice). The costs associated with Tandem's production are: Fixed costs (per year) Administrative labor $50000 Variable Costs per bike Materials $30 Mfg. Labor Assembly labor Packing material Packing labor Shipping cost ТОTAL Utilities 5000 24 Plant Overhead 65000 $120000 8 3 ТOTAL Note: this is $10000 per month. 10 $77 1. Find the monthly breakeven quantity using the above data. 2. Express monthly breakeven dollar sales (using the quantity calculated in #1). 3. The cost of utilities doubles (annual fixed costs are now $125000 which is $10416.67 per month). What is the new monthly breakeven quantity? 4. What is the Contribution Margin Ratio (CMR), using the costs used in #3? 5. You believe you can sell only 80 bikes a month. Using the costs from #3, what price must be charged per bike to break even selling only 80 bikes per month? 6. Using the original selling price of…
Total cost (dollars per unit) B 100- 80 - 60 40 3 4 Output (units per hour) 2. 20
Process A has fixed costs of $10,000 and unit costs of $4.50 each, and Process B has fixed costs of $25,000 and unit costs of $1.50 each. At what level of annual production would the two processes have the same cost? (a) 50 units (b) 500 units (c) 5000 units (d) 50,000 units?
1. Assume the cost of making 30 belts is $800, the cost of making 35 belts is $910, and the cost equation is linear. The belts are sold for $27 each. Find the marginal cost of production. (b) Find a linear equation in slope-intercept form that will represent the total cost of making x belts. (c) What is the fixed cost? (a) (d) Find a profit equation in slope-intercept form that will represent the profit if x belts are made and sold. (e) Find the break-even point.
An assembly line can produce 60 units per hour. The line’s hourly cost is $3600 on straight time (the first 8 hours). Workers are guaranteed a minimum of 6 hours. There is a 50% premium for overtime, and productivity for overtime drops by 5%. What are the average and marginal costs per unit for the following daily quantities? (a) 300. (b) 400. (c) 500. (d) 600.
You are presented with the following break-even chart of GHI Company. They have budgeted sales of 75 000 units. You are required to use the chart to assist you in answering the questions posed below. Break-even chart for GHI Company R(000s) 3.6 REQUIRED 3.7 3.8 320 290 250 3.9 110 Units (000s) 56 75 (a) (b) Provide the correct graph labels represented by '(a)' and '(b)'. What is the value of the fixed costs of GHI Company? What is GHI Company's break-even revenue and units? How much profit would be made if GHI were to sell 75 000 units? 3.10 Explain your understanding of fixed costs and variable costs. In your answer you are required to provide a brief definition, an example of each and make use of a rough graph to illustrate your understanding of each.
2-66 New technicians in an oncology department process patients at rates shown below. Steady state occurs at the eighth unit. Patient number: 1 2 3 4 5 6 7 8 Process time (min): 75 61 52 50 45 43 40 39 (a) Calculate the learning curve rate for units 1-8. (b) What is the total time needed to process 12 patients?

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS