Question 2 [11 Marks] John plans to start a milk and pizza business in 2022. Suppose John owns a rental premises from which his rental earnings are AUD 3,000 per month. He asks the rental people to leave and uses the premises for the milk and pizza business. The table below represents John's January business summary: Cost [AUDl 1 Milk truck 120,000 Milk cooler 40,000 2 litre milk packs (Number of packs bought depend on demand. Assume 30,000 January average expenditure) Pizza ingredients (Ingredients used depend on demand. Assume January 4,000 expenditure] H|5003 Final Assessment T] 2022 2 cashiers [Assume a cashier per section [Milk and Pizza]. Also, wages depend on 3,000 hours worked. Assume January average wages per cashier} 2 bakers (Wages depend on hours worked. Assume January average wages per 3,500 baker} Pizza packaging boxes [Boxes depend on demand. Assume average January boxes 2,000 used) Pizza special oven 25,000 i. Milk production per day: 300 litres per day Note: Assume 90,000 litres per month produced and bought. ii. Pizza production per day is 500 pizzas. Assume 15,000 pizzas per month are produced and all that are produced are sold. Use the table to answer the questions below. a. Calculate John's fixed cost and average fixed cost for each section. [2 Marks) ANSWER a}: b. Calculate John's variable cost and average variable cost for each section. [2 Marks] ANSWER b}: c. Also, assume John sells each pizza at AUD 10.00. Calculate John's accounting profit and economic profit for the month of January. l3_lhdznl