ECN212

1. How many cookies would you have to make to earn a profit?
2. How many cookies would you have to make to have a profit margin of 50% (EX: half of the sale's price is profit OR your cost per cookie is half of the price per cookie)? If this doesn't happen with your recipe after three batches can you estimate or guess how many batches it would take to get there. Explain your reasoning.
3. What is your marginal revenue from Batch 1 to 2? And from 2 to 3?
4. What is your marginal total cost from Batch 1 to 2? And from 2 to 3?

UUUNU TUTTUI LUI F G J K N - 12 H I Number of cookies in batch: Average variable cost per cookie: - 12 L M Number of cookies in batch: Average variable cost per cookie: Number of cookies in batch: Average variable cost per cookie: - 12 $1.94 $0.00 $0.21 22 $30.00 $30.00 Fixed Costs Baking sheet Mixing bowl Wooden spoon Total Fixed Costs: Total Fixed Cost: Number of cookies in batch: Average fixed cost per cookie: 12 $12 $8 $10 $30 Total Fixed Cost: Number of cookies in batch: Average fixed cost per cookie: 12 Total Fixed Cost: Number of cookies in batch: Average fixed cost per cookie: $30.00 12 $2.50 $2.50 $2.50 $23.23 $30.00 $53.23 Total Variable Cost: Total Fixed Cost: Total Cost: Number of cookies in batch: Average total cost Batch #1: Sales prices small cookies: medium cookies: large cookies: $0.00 $30.00 $30.00 50.50 $1.00 $1.50 Total Variable Cost: Total Fixed Cost: Total Cost: Number of cookies in batch: Average total cost Batch #2: Total Variable Cost: Total Fixed Cost: Total Cost: Number of cookies in batch: Average total cost Batch #3: $2.47 $30 $32.47 12 $2.71 12 $4.44 $2.50 Sales price per cookie (see lines 28-31): Profit margin per cookie: $1.50 -$2.94 Total Variable Cost for Batches 1 & 2: Total Fixed Cost: $23.23 $30 $25.70 $30 $53.23 Total Variable Cost for Batches 1, 2, & 3: Total Fixed Cost: Total Costs for Batches 1, 2, &3: Number of cookies in Batches 1, 2, &3: Average total cost for Batches 1, 2, &3: $55.70 Total profit/loss for batch 1: Total Costs for Batches 1 & 2: Number of cookies in Batches 1 & 2: Average total cost for Batches 1 & 2: -$35.23 24 36 $2.22 $1.55 $1.50 $1.50 Sales price per cookie (see lines 28-31): Profit margin per cookie after two batches: Sales price per cookie (see lines 28-31): Profit margin per cookie after three batches: -50.72 -30.05 Total profit/loss for batches 1 and 2: -$17.23 Total profit/loss for batches 1, 2, & 3: -$1.70 UUUNU TUTTUI LUI F G J K N - 12 H I Number of cookies in batch: Average variable cost per cookie: - 12 L M Number of cookies in batch: Average variable cost per cookie: Number of cookies in batch: Average variable cost per cookie: - 12 $1.94 $0.00 $0.21 22 $30.00 $30.00 Fixed Costs Baking sheet Mixing bowl Wooden spoon Total Fixed Costs: Total Fixed Cost: Number of cookies in batch: Average fixed cost per cookie: 12 $12 $8 $10 $30 Total Fixed Cost: Number of cookies in batch: Average fixed cost per cookie: 12 Total Fixed Cost: Number of cookies in batch: Average fixed cost per cookie: $30.00 12 $2.50 $2.50 $2.50 $23.23 $30.00 $53.23 Total Variable Cost: Total Fixed Cost: Total Cost: Number of cookies in batch: Average total cost Batch #1: Sales prices small cookies: medium cookies: large cookies: $0.00 $30.00 $30.00 50.50 $1.00 $1.50 Total Variable Cost: Total Fixed Cost: Total Cost: Number of cookies in batch: Average total cost Batch #2: Total Variable Cost: Total Fixed Cost: Total Cost: Number of cookies in batch: Average total cost Batch #3: $2.47 $30 $32.47 12 $2.71 12 $4.44 $2.50 Sales price per cookie (see lines 28-31): Profit margin per cookie: $1.50 -$2.94 Total Variable Cost for Batches 1 & 2: Total Fixed Cost: $23.23 $30 $25.70 $30 $53.23 Total Variable Cost for Batches 1, 2, & 3: Total Fixed Cost: Total Costs for Batches 1, 2, &3: Number of cookies in Batches 1, 2, &3: Average total cost for Batches 1, 2, &3: $55.70 Total profit/loss for batch 1: Total Costs for Batches 1 & 2: Number of cookies in Batches 1 & 2: Average total cost for Batches 1 & 2: -$35.23 24 36 $2.22 $1.55 $1.50 $1.50 Sales price per cookie (see lines 28-31): Profit margin per cookie after two batches: Sales price per cookie (see lines 28-31): Profit margin per cookie after three batches: -50.72 -30.05 Total profit/loss for batches 1 and 2: -$17.23 Total profit/loss for batches 1, 2, & 3: -$1.70