Hi.

I had to add screen shots of the question. Please don't round up the MC (use two decimal places).

After completing the table, what is the lowest price you would be willing to start producing this new product? Be precise. Don't round up to the nearest dollar.Besides that, If you were already committed to the fixed costs, how low could the price per picture frame fall before you would consider shutting down production?

Review View ? Tell me AaBbCcDdE AaBbCcDdl AaBbC Ev Normal No Spacing Heading A company produces gold picture frames. The cost per picture frame is: Materials $9 Packaging $1 Decorations on the frame $5 Shipping and handling $1.5 Each worker earns $30,000 annually in salary and benefits. The number of workers changes based on the level of production. This means this is a variable cost. The artist who creates the designs on the picture frames is paid $25,000 annually. Senior management are paid a total of $200,000 annually. Other annual costs are: Taxes and Insurance $17,000 Utilities $50,000 Rent $300,000 Miscellaneous Overhead Expenses $24,000 The following production is possible: No. Of 0 Workers 2 3 5 6 No. Of 12,000 Picture 21,000 35,000 50,000 65,000 73,000 |71,000 Frames that can be madeT AaBbCcDdl AaBbCcDd[ AaBbCCD AaBbCc Normal No Spacing Heading 1 Heading 1. Using all this information complete the following table and answer the questions. It would be easier if you set this up in an Excel spreadsheet. When you are done, you must submit it as a Word document with your answers. You will use this table to answer questions 2 and 3. (4 marks) Your first step is to identify which are fixed costs and which are variable costs. If you will have to keep paying the cost whether you produce 0 units of the product or 10,000 units, then it is a fixed cost. In the short run you have to keep paying it. In the long run you may be able to change these fixed costs. A variable cost changes based on how much of the product you produce. But the variable costs may not change all at the same time. # of workers Q TVC AVC AFC TC ATC MC TVC / Q FC / Q FC + VC TC/Q ATC / AQ 0 1 12000 2 21000 3 35000 4 50000 5 65000 6 73000 7 71000