Normal No Spac... Heading 1 Heading 2 Title Subtitle Subtl Styles You are given the following total costs (exclusive of the opportunity cost of the buildings, land, and equipment) for four factories. Costs are in thousands of dollars. Units produced are thousands of units per year. The value of buildings, land and equipment is in millions of dollars. Total costs (exclusive of buildings, land, and equipment) ($'000s) Number of units produced ('000s) Factory # 0 5 10 15 20 25 30 1 2000 4800 7200 9200 14000 22000 34000 2 1500 4500 6900 10100 16500 26500 40500 3 1000 3000 4200 5200 7200 10200 14200 4 500 4900 5900 8420 12500 18500 28500 Factory # Value of buildings, land, and equipment ($'000,000) 1 14 2 10 3 12 4 4 Factory Opportunity cost of capital (annual #96) 1 996 2 10% 3 11% 4 9% ignoring the opportunity cost of the building, land, and equipment, calculate: (1) The minimum average variable cost. (2) Assuming that factories minimize their average variable costs, the gain or loss if prices were 5% higher than your answer to (1) That is, price your answer to (1) x 1.05 Including the opportunity cost of the building, land, and equipment, calculate: (3) The price that would ensure that economic profits are not negative. You should assume that each factory operates where average costs are minimized. This may be different from the production level in. You will have a total of 12 answers, & for each of the four factories