Sweatshirts per day	Employee-hours per day
0	0
2	1
4	3
6	6
8	10
10	15
12	21
14	28

Suppose that the going wage is $10/hour and South End Lifestyle's daily capital cost for renting the building and the sewing machines is fixed at $50.

a. [5 points] Calculate South End Lifestyle's variable cost, fixed cost, total cost, marginal cost, and average total cost of producing between 0 and 14 sweatshirts per day. Make sure to put marginal cost at the midpoint between units, and remember that MC = TC/Q.

Sweatshirts per day	Employee-hours per day	TVC	TFC	TC	MC	ATC
0	0
2	1
4	3
6	6
8	10
10	15
12	21
14	28

b. [5 points] At the market price of $22.50 per sweatshirt, what is South End Lifestyle's profit-maximizing quantity of sweatshirts? What is the firm's profit? What is the quantity need for profit maximization.

c. [5 points] Suppose that South End Lifestyle's capital cost were not $50 per day, but only $40 per day. Recalculate South End Lifestyle's variable cost, fixed cost, total cost, marginal cost, and average total cost. Now what is the profit-maximizing number of sweatshirts? What is the firm's profit?