0	Cost ($) for 1 batch (1,000 gallons =8,000 pints)	Cost ($) for 4 batches (4,000 gallons =32,000 pints)
Item	Cost per Item($)	Fixed Cost	Variable Cost	Total Cost	Fixed Cost	Variable Cost	Total
Utilities	700		700			700*4=2,800
Water	26
Grain	6,000
Rent	4,000
Hops	1,000
Yeast	200
Wages	1,792
Total (sum column)
Average Cost Per Pint(total / output)
Instructions
1. Identify which costs areFixed(i.e.do notchange when output changes) and which areVariable(dochange when output changes).Enter the amountsin the appropriate column underFixed CostorVariable Cost.I have given you one:Utilities are a variable cost:more output requires more energy.
2. TotaltheFixed CostandVariable CostandTotal Cost Columns. Enter the totals in C10, D10, E10.
3. Calculate theAverage Fixed Cost, Average Variable Cost and Average Total Costper Pint. Enter the averages in C11, D11, E11.
4. Repeat steps 1 to 3 for32,000 pints.Think carefully about which costs will change and which will not.Make sure that youonly increase those coststhatdo changewith the increase in output.Enter the totals in cells F10, G10 and H10.Enter the aveages in F11, G11 and H11.
5. What has happened to theaverage total costof producing a pintasoutput quadrupled from 8,000 pints to 32,000?Explain.
Answer:
6. What has happened to thetotal costas output quadrupled?Did total cost quadruple?Explain.
Answer:
7. A 16oz pint of The Chief sells for $6.What does your answer to 5 above imply about theprofitabilityof The Chiefas output expands?Explainandcalculate the profit-per-pintunder 8,000 pints vs. 32,000 pints.
Answer:
8. What other costs should be included?Give an example of one additional fixed cost and one additional variable cost.
Answer:

PLEASE SHOW ALL STEPS AND EQUATIONS TO ENTER INTO EXCEL.