Precious Gem Production Cost Table (for Simulation)
Before beginning the Profit-Maximization Simulation, fill in the table below with the formulas for the empty columns (VC, ATC, AVC, MC). The formula is to help remind you how these are calculated.
Enter the cost parameters (yellow cells) as instructed for each scenario.
Use this table to determine the profit-maximizing output level of your firm in the simulation.
Upkeep:	7,500	(fixed cost parameter)
Employee Salary:	100	(wage parameter)
Cost of Acquisition:	5	(variable cost parameter)
Quantity of Gemstones (Carats per Month)	Total Cost	Fixed Cost	Variable Cost	Average Total Cost	Average Variable Cost	Marginal Cost
0	$ 7,500
1	$ 7,605
2	$ 7,720
3	$ 7,845
4	$ 7,980
5	$ 8,125
6	$ 8,280
7	$ 8,445
8	$ 8,620
9	$ 8,805
10	$ 9,000
11	$ 9,205
12	$ 9,420
13	$ 9,645
14	$ 9,880
15	$ 10,125
16	$ 10,380
17	$ 10,645
18	$ 10,920
19	$ 11,205
20	$ 11,500
21	$ 11,805
22	$ 12,120
23	$ 12,445
24	$ 12,780
25	$ 13,125
26	$ 13,480
27	$ 13,845
28	$ 14,220
29	$ 14,605
30	$ 15,000
31	$ 15,405
32	$ 15,820
33	$ 16,245
34	$ 16,680
35	$ 17,125
36	$ 17,580
37	$ 18,045
38	$ 18,520
39	$ 19,005
40	$ 19,500
41	$ 20,005
42	$ 20,520
43	$ 21,045
44	$ 21,580
45	$ 22,125
46	$ 22,680
47	$ 23,245
48	$ 23,820
49	$ 24,405
50	$ 25,000
51	$ 25,605
52	$ 26,220
53	$ 26,845
54	$ 27,480
55	$ 28,125
56	$ 28,780
57	$ 29,445
58	$ 30,120
59	$ 30,805
60	$ 31,500
61	$ 32,205
62	$ 32,920
63	$ 33,645
64	$ 34,380
65	$ 35,125
66	$ 35,880
67	$ 36,645
68	$ 37,420
69	$ 38,205
70	$ 39,000
71	$ 39,805
72	$ 40,620
73	$ 41,445
74	$ 42,280
75	$ 43,125
76	$ 43,980
77	$ 44,845
78	$ 45,720
79	$ 46,605
80	$ 47,500
81	$ 48,405
82	$ 49,320
83	$ 50,245
84	$ 51,180
85	$ 52,125
86	$ 53,080
87	$ 54,045
88	$ 55,020
89	$ 56,005
90	$ 57,000
91	$ 58,005
92	$ 59,020
93	$ 60,045
94	$ 61,080
95	$ 62,125
96	$ 63,180
97	$ 64,245
98	$ 65,320
99	$ 66,405

Use the excel sheet you downloaded to determine the profit maximizing quantity Q for the following scenario. This month's market price = Upkeep = $7,500 per month $565 per carat 9 Employee Salary = $100 per hour Cost of Acquisition = $5 per carat select for into 6) select for into (9 Submit your answer based on the data provided above and in the spreadsheet. E