Your firm has collected the following information on unit sales and total costs for the past 6 months:

Unit sales Total costs July 23,000 $810,000 August 18,000 $600,000 September 15,000 $625,000 October 20,000 $720,000 November 19,000 $670,000 December 26,000 $790,000 Make a scatterplot of the points

Calculate variable cost per unit:
Calculate fixed cost:
The firm’s cost function:
If the firm sells 25,000 units this month, what will total costs be?
Bonus: How would you draw the firm’s cost function on the scatterplot? Draw the cost function.

Transcribed Image Text:

$900,000.00 $800,000.00 $700,000.00 $600,000.00 $500,000.00 $400,000.00 $300,000.00 $200,000.00 $100,000.00 $0.00 0 5000 10000 15000 20000 25000 30000