Question

Ms. Samantha Guy sells specialty gourmet milk shakes made with goat milk. The cost of ingredients to make each milk shake is $25.00. Ms. Guy pays her employees $300 per day. She also incurs a fixed cost of $450 per day. Answer the following questions:

1. What is Ms. Guy’s variable cost per day when she produces 500 milk shakes using ten (10) workers?
2. What is Ms. Guy’s total fixed cost when she does not produce any milk shakes at all?
3. What is Ms. Guy’s total cost per day when she produces 500 milk shakes using ten (10) workers?
4. What is Ms. Guy’s average total cost per day when she produces 500 milk shakes using ten (10) workers?
5. What is Ms. Guy’s average variable cost per day when she produces 500 milk shakes using ten (10) workers?

Answer 1

Ms. Samantha Guy sello The cost of ingredientes $ 300 per day naulha Guy sells speciality gourmet milk shaker made with goat milk. e cost of ingredišnd to make each Shilk shake = $25.00 Ms. Guy's variable cost per day when she produces 500 milk shakes using in workers " = cost of ingrediente t`payment to employees = $25 x 500 +$ 300 x 10 = $15,500 * Ms. Guy's Fc when she does not produce any milk shakes at all - $450 ☺ Ms. Guy's total cost per day when she prodies 500 milkshakes using so workere = Variable cout fixed cost = $15.500+ $450 = $ 15,950 Ms. Guy's average total cost per day when she produces 500 milkshakes using - $31.90 $ 15,950 - 500 - 10 Workers ut Total cost Quantity . Variable cost quantity $ 15,500 5) Her average variable cost -- - 500 = $31.00