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Total Cost Analysis The manager of a rival T-shirt stand found that her cost to produce 10 T- shirts is $112.67, while the co
Fixed Cost Analysis In deciding whether to set up a new manufacturing plant, company analysts have decided that a linear func
Marginal Cost Analysis The manager of a T-shirt stand found that the cost to produce 10 T-shirts s $106.33, while the cost to
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Answer #1
10 T-shirt $112.67
40 T-shirt $399.09
Differential 30 T shirt $286.42
(40-10) shirts (399.09-112.67)
hence, variable cost per unit = 286.42/30
$9.55
cost breakup of 10 T-shirts
Variable cost = 10*9.55 = 95.50
Fixed cost = 112.67-95.47 = 17.17
Cost of producing 100 t-shirts
Variable cost =100*9.55
Fixed Cost =17.20
Total cost $972.20
Cost of 1000 items/day $54,705.00
Cost of 5000 items/day $73,726.00
Differential 4000 items/day $19,021.00
Variable cost per unit $4.76 (19021/4000)
Cost breakup of 1000 items/day
Variable cost $4,755.25
Fixed Cost $49,949.75
10 t-shirt cost $106.33
40 t-shirt cost $401.54
Differencial 30 t shirt cost $295.21 (401.54-106.33)
Marginal cost per tshirt $9.84 (295.21/30)
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