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Exercise C4 (Cost functions and values) (5 points) Controlling department analyses a linear total cost function C [] which can be split into fixed costs
Exercise C4 (Cost functions and values) (5 points) Controlling department analyses a linear total cost function C [] which can be split into fixed costs (CF: in ) and variable (total) costs (C: in ). Additionally marginal costs (MC) and total per-unit costs (c) are analysed. In the figure below the values of the total per unit costs c [12,50 per unit X] for a production volume of 4 [units] as well as the variable per unit costs cv [7,50 per unit X] for a production volume x of 8 [units] are provided. 100 80 60 50 40 30 20 10 Costs 1 c(x=4) = 12,50 b) Fixed costs CF 5 c) Total variable per-unit costs cv(x=4) d) Total per-unit costs c(x=1) Please calculate/ derive the following cost values for the given production volume x: a) The function of the total costs C(x) e) Total costs C(x=1) C,(x-8)= 7,50 10 X
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