5) Below are widget production details at Super Duper Production Company. Management has been accessing costs and want to create production efficiencies as an expected
5) Below are widget production details at Super Duper Production Company. Management has been accessing costs and want to create production efficiencies as an expected recession approaches. Fixed costs are $1325/month and labourers cost $800/month. You are to i) calculate and complete the table; ii) prepare the graph showing the MC and ATC curves based on the calculated values as you prepare your presentation for management. (3+2+5 marks) Super Duper Production Company Labourers Output FC VC TO MC ATC 1 280 540 770 4 960 1130 6 1270 7 1380 1450 iif) Points for management discussion. Price 12.00 Recommendations: The number of labourers to be 10.00 retained should be_ which 8.00 will result in a MC of $ and an ATC of $. per widget. 6.00 Based on these calculations we will produce widgets at a total 4.00 cost of $ 2.00 0 300 600 900 1200 1500 1800 Quantity
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