Mr. T has a small pressing firm where he presses sesame seeds to extract sesame oil. He buys the sesame seeds from farmers who live in nearby villages and sells the sesame oil to an oil merchant in town.

He produces one kilo of sesame oil from 5 kilos of sesame seeds.

The firm has an oil press with the following cost figures:

Price of the oil press14 000 dollars

Scrap value2 000

Life10 years

The other fixed costs of the firm are:

Rent200 dollars per month

Municipal taxes50 dollars per month

Worker1 450 dollars per month

He buys the sesame seeds at a price of 50 cents (half a dollar) per kilo. He extracts 1 kilo of sesame oil from 5 kilos of sesame seeds.

The maximum monthly capacity of the press is 15 tons of sesame seeds per month (or half a ton per day.)

This means that the range of his monthly sesame seed utilization is between 1 ton and 15 tons.

Using a range of sesame seed utilization between 1 ton per month and 15 tons per month please calculate:

1.The total fixed costs of the firm

2.The average fixed costs of the firm

3.The average variable cost of the firm

4.The total variable costs of the firm

5.The average total cost of the firm and

6.The total cost of the firm

Using the information you have calculated please find out how much profit he would be making if he sold 1 ton (1 000 kilos) of sesame oil at a price of 4 dollars per kilo in the month of May 2020.

Please show all calculations.