Solve clearly..

You are a manager for Sigma-Nine Corp. where you oversee production at four factories. You are given the following total costs (exclusive of the opportunity cost of the buildings, land, and equipment) for the 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. (Yes, you must deal with the different units. Real life numbers are often messy, involving different units.) Total costs (exclusive of buildings, land, and equipment) ($'000s) Number of units produced ('000s) Factory # 0 5 10 15 20 25 30 2000 4800 7200 9200 14000 22000 34000 500 4900 5900 8420 12500 18500 28500 PWNH 3500 6500 3900 12100 18500 28500 42500 3000 5000 6200 7200 9200 12200 16200 Factory # Value of buildings, land, and equipment ($'000,000) 14 10 P WN 12 4 Factory # Opportunity cost of capital (annual %) 9% 10% PWNH 11% 9% For each factory: gnoring 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 (1). You will have a total of 12 answers, 3 for each of the four factories