121C x x cour x .Hon x ' Inbo x 9 Unit x ' TITL x i Dasi x if; ECX > YouTube Q 5Waysto Fight R... 3'4 Maps '3 Translate ' Gmail E All Bookmarks ecxzszo Individual Assignment (3).pdf 1 6: Weight: 30% Due Date: Week 10 Monday (2 October) 4:30pm Criteria: You will be assessed according to the following criteria for a total of 30 marks: Clear and concise presentation = 5 marks Correct estimation of outputs and costs (1.5 marks for output and 1.5 marks for each of the costs) = 12 marks Correct illustrations of cost functions (1 mark for each of the seven cost functions) = 7 marks Discussion of costs curves and implication for business decisions given a market price = 6 marks Instructions: You have been hired as an external consultant by Extra Virgin Olive Oil Incorporated (EVOOI) to advise them on their cost of setting up an olive oil producing facility in southern Victoria. Please provide advice to the questions provided by the CEO (Dr Pit) below, Please present your responses to the questions in a slide PowerPoint style (save as PDF and upload). Provide your name and Student ID on the title page of the PDF upload. Also please upload the excel file used to create your graphs. Victorian Olive Oil Project A foreign investor, Extra Virgin Olive Oil Incorporated (EVOOI) is considering establishing an irrigated olivegrowing and oil-processing project in Southern Victoria. Extra virgin olive oil production is represented by a competitive industry and a market determined wholesale price of $3.55 per litre. It is estimated that each hectare (Ha) of land used for the production of olive oil will produce 200 trees. Fruit yield per tree is 25kg. Oil yield is expected to be 030 litres per kg of fruit with a 3093/7096 split of olive oil/extra virgin olive oil. M (no S X c5be( X 1:1 C( X (834) X G cours X Home X M Inbox X Feed X Unit: X TITLE X Dash X SECX2 X ECX2 X Job s X C O File | /Users/ruvindijayawardana/Downloads/ECX2320%20Individual%20Assignment%20(3).pdf COPY ASLOR Update : YouTube 5 Ways to Fight R... Maps Translate M Gmail All Bookmarks Apps E ECX2320 Individual Assignment (3).pdf 2 / 3 90% + The following total fixed operating cost schedule is provided with fixed costs spilt between olive oil and extra virgin olive oil based on percentage of oil yields from fruit: Cost Category $ amount Administration and management 600,000 Accounting support 10,000 Marketing 0,000 IT support 75,000 Office equipment 130,000 Depreciation on equipment 20,000 Interest on loans 35,000 The following schedule applies to all variable costs which are spilt between olive oil and extra virgin olive oil based on percentage of oil yields from fruit: Repairs Factory Electrical Harvesting Harvesting & Bottling Freight fuel cost Labour Power Ha labour cost Mainte- cost Cost $/litre cost cost $/litre nance $/litre $/litre $/litre $/litre $/Litre 100 0.040 0.020 0.040 0.130 0.500 0.140 1.000 200 0.032 0.016 0.032 .104 0.400 0.112 0.800 300 0.024 0.012 0.024 0.078 0.300 .084 0.600 400 0.024 0.012 0.024 0.080 0.306 0.086 0.612 500 0.025 0.013 .025 .083 0.318 .089 .636 600 0.027 0.014 0.027 0.089 0.341 .095 0.681 700 0.032 0.016 .032 0.104 0.398 0.112 0.797 800 0.041 0.021 0.041 0.135 0.518 0.145 1.036 900 0.062 .031 .062 .202 0.777 0.218 1.554 1000 0.124 0.062 0.124 0.404 1.554 0.435 3.108x 9;, 121C x . (834 x cour x Hon- x ' Inbo x 9;, Feel x 9 TITL x i Dasl x . . v [Users/ruvindijayawardana/Down|oads/ECX2320%20|ndividual%20Assignment%20(3).pdf I] R Update ; Apps > YouTube lg 5Waysto Fight R... 3'4 Maps '3 Translate ' Gmail E All Bookmarks _ ECXZSZOIndividualAssignment(3).pdf 100% -l- Ill 1 15' SCHOOL Questions: 1a. Calculate total trees, fruit yield (in kg) and output of extra virgin olive oil (in litres) for 100, 200, 300, 400, 500, 600, 700, 800, 900 and 1,000 Ha of total land use and present your answers in a table format (half a mark for each set of output related estimates = 1.5 marks) 1b. For each of the extra virgin olive oil yield output levels. calculate the total fixed cost, total variable cost. total cost, average fixed cost, average variable cost, average total cost and marginal cost and present your answers in a table format (1.5 marks for each set of cost estimates = 10.5 marks). 2a. Using a chart created in Excel, provide an illustration of the total cost, total variable cost and total fixed cost of extra virgin olive oil (3 marks). 2b. Using a chart created in Excel, provide an illustration of average total cost, average variable cost and average fixed cost and marginal cost of extra virgin olive oil (4 marks). 3a. Why do the average costs curves and marginal cost curve demonstrate a U- shape as shown in 2b? (in your answer refer to the respective quantity of litres) (3 marks). 3b. How many litres of extra virgin olive oil should the business produce? Explain your answer by referring to the profit maximising condition