Cost of production

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Mlnven_zbz

Business Finance

Description

using MS Excel or a table in MS word, complete table 1 (joseph Farms, inc., Cost and Revenue Data.

Assume that the price is $165

Assume the fixed costs are $125, at an output level of 1

Assume that the data represents a firm in pure competition.

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Explanation & Answer

it is done, please check the attached file, let me know if you have any questions, thank you

Table 1: Cost and Revenue Data of Joseph Farms, Inc.

Column1 Column2 Column3 Column4
Output
Price per Total
Total Variable
Level
unit
Fixed
Cost
Cost
0
$165
$125 $
NA
1
$165
$125 $ 113.00
2
$165
$125 $ 213.00
3
$165
$125 $ 300.00
4
$165
$125 $ 375.00
5
$165
$125 $ 463.00
6
$165
$125 $ 563.00
7
$165
$125 $ 675.00
8
$165
$125 $ 813.00
9
$165
$125 $ 975.00
10
$165
$125 $ 1,163.00

Column5
Total Cost

$238.00
$338.00
$425.00
$500.00
$588.00
$688.00
$800.00
$938.00
$1,100.00
$1,288.00

Column6
Average
Fixed
Cost
$125.00
$62.50
$41.62
$31.25
$25.00
$20.83
$17.88
$15.63
$13.89
$12.50

Column7
Average
Variable
Cost
$113.00
$106.50
$100.00
$93.75
$92.60
$93.83
$96.43
$101.63
$108.33
$116.30

Calculation Summary.
Total cost: sum of Total Fixed Cost and Total Variable cost.
Total cost = Total fixed cost+ Total variable cost.

Average Fixed Cost: Divide the Total Fixed cost by the output level.
Averaged fixed cost = Total fixed cost/output level

Column8 Column9 Column10
Average
Marginal Marginal
Total
Cost
Revenue
Cost
$238.00
$113.00
$165
$169.00
$100.00
$165
$141.67
$87.00
$165
$125.00
$75.00
$165
$117.60
$88.00
$165
$114.67
$100.00
$165
$114.29
$112.00
$165
$117.25
$138.00
$165
$122.22
$162.00
$165
$128.80
$188.00
$165

Column11
Total
Revenue
$165.00
$330.00
$495.00
$660.00
$825.00
$990.00
$1,155.00
$1,320.00
$1,485.00
$1,650.00

Average Variable Cost: divide t...

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