The following hypothetical data is for a period of one month for a farm in Canada that produces one commodity in an industry that is theoretically close to perfect competition. Fixed Overhend Costs Machinery Costs Administrative Salaries $1,500 2,500 Utilities and Other Overhead Costs 2,000 Direct Production Costs Following are direct production costs including labour and materials used in making the products for a range of production from 600 units to 1600 units. Quantity Production Costs Use the data to calculate the following for each quantity and present an Excel chart with the results. (2 marks) 1. 600 units $3800 700 4400 a) Fixed Cost, Variable Cost and Total Cost 800 4900 5300 5800 b) Marginal Cost per unit (Divide MC by 100 to get MC per unit - data is presented in increments of 100 units) 900 1000 1100 6500 1200 7400 c) Average Fixed Cost, Average Variable Cost, Average Total Cost 1300 8500 9800 1400 2. 1500 1600 Using your Excel chart, graph the following: Marginal Cost, Average Variable Cost, Average Total Cost (2 marks) 11300 13100 3. If the market price is $13.00 per unit, identify the level of production where the net profit will be 3. If the market price is $13.00 per unit, identify the level of production where the net profit will be maximized. Calculate the amount of profit at this point and the profit per unit. (2 marks) 4. Identify the quantity and price at which the firm will break-even. Explain. (1 mark) If the market price falls to $9.00 will the firm continue to produce? Explain with reference to average costs. (2 marks) 5. 6. Identify the price at which the firm will want to shut down production. Explain. (1 mark)