Using excel only, please fill out the costs for the production exercise on Page 5 of your lecture notes. Remember, you have to build the formulas to get the points! There will 5 extra credit points if you build a marginal cost line chart using the charting tools in Excel. IF POSSIBLE CAN YOU DO EXTRA CREDIT this is for my test review
Exercise on Marginal Costing and Production Process Decisions (1) (3) Derivation of Average Costs (2) (5) (6) (7) Average Average Average Fixed Variable Total Fixed Variable Total Quantity Cost Cost Cost Cost Cost Costs Q FC VC TC AFC AVC ATC 0 2,000 0 76 2,000 400 2,000 800 492 2,000 1,200 784 2,000 1600 1100 2,000 2000 1416 2,000 2400 1708 2,000 2800 1952 2,000 3200 2124 2,000 3600 2200 2,000 4000 248 1416 1708 1952 2124 2200 2,000 2,000 2,000 2,000 2,000 2400 2800 3200 3600 4000 Derivation of Marginal Costs (3) (4) (5) (1) (2) (6) (7) Marginal Cost VC Q TC MC Quantity Q 0 76 248 492 784 1100 1416 1708 1952 2124 2200 Variable Cost VC 0 400 800 1,200 1600 2000 2400 2800 3200 3600 4000 Total Cost TC 2,000 2,400 2,800 3,200 3,600 4,000 4,400 4,800 5,200 5,600 6,000 Key: A = Change (4) (1) Quantity Q (2) Fixed Cost FC (3) Variable Cost VC Total Cost TC (5) Average Fixed Cost AFC (6) Average Variable Cost AVC (7) Average Total Costs ATC (8) Marginal Cost MC 0 100 200 300 400 500 600 10,000 10,000 10,000 10,000 10,000 10,000 10,0 200 125 133.33 150 200 250 Making the Production Decision from a Cost Function From the following cost function, we can derive the same information C(Q) = = 50 + 25Q + 30Q +5Q3 1. Finding the Fixed Cost 2. Finding the Variable Costs at an output level of 10 Making the Production Decision from a Cost Function From the following cost function, we can derive the same information C(Q) = 50 + 25Q + 30Q +5Q3 1. Finding the Fixed Cost 2. Finding the Variable Costs at an output level of 10 3. Finding the Total Costs at an output level of 10 Exercise on Marginal Costing and Production Process Decisions (1) (3) Derivation of Average Costs (2) (5) (6) (7) Average Average Average Fixed Variable Total Fixed Variable Total Quantity Cost Cost Cost Cost Cost Costs Q FC VC TC AFC AVC ATC 0 2,000 0 76 2,000 400 2,000 800 492 2,000 1,200 784 2,000 1600 1100 2,000 2000 1416 2,000 2400 1708 2,000 2800 1952 2,000 3200 2124 2,000 3600 2200 2,000 4000 248 1416 1708 1952 2124 2200 2,000 2,000 2,000 2,000 2,000 2400 2800 3200 3600 4000 Derivation of Marginal Costs (3) (4) (5) (1) (2) (6) (7) Marginal Cost VC Q TC MC Quantity Q 0 76 248 492 784 1100 1416 1708 1952 2124 2200 Variable Cost VC 0 400 800 1,200 1600 2000 2400 2800 3200 3600 4000 Total Cost TC 2,000 2,400 2,800 3,200 3,600 4,000 4,400 4,800 5,200 5,600 6,000 Key: A = Change (4) (1) Quantity Q (2) Fixed Cost FC (3) Variable Cost VC Total Cost TC (5) Average Fixed Cost AFC (6) Average Variable Cost AVC (7) Average Total Costs ATC (8) Marginal Cost MC 0 100 200 300 400 500 600 10,000 10,000 10,000 10,000 10,000 10,000 10,0 200 125 133.33 150 200 250 Making the Production Decision from a Cost Function From the following cost function, we can derive the same information C(Q) = = 50 + 25Q + 30Q +5Q3 1. Finding the Fixed Cost 2. Finding the Variable Costs at an output level of 10 Making the Production Decision from a Cost Function From the following cost function, we can derive the same information C(Q) = 50 + 25Q + 30Q +5Q3 1. Finding the Fixed Cost 2. Finding the Variable Costs at an output level of 10 3. Finding the Total Costs at an output level of 10
