W AutoSave on Fg ? ~ ~ BU224_Hanta Rajaonarivelo_Unit7 . Saved V Search Hantamalala Rajaonarivelo X File Home Insert Draw Design Layout References Mailings Review View Help Table Design Layout Comments Editing Share Times New Roman ~ 12 ~ A" A Aa Ap EVENEVENT Find Lol Paste LE Normal No Spacing Replace BIUvab X X A LA Headin: Heading 2 Title Dictate Reuse Editor Select Files Clipboard Font Paragraph Styles Editing Voice Reuse Files Assignment In this assignment, you will define and calculate the remaining six major cost elements of a business when given the total costs and the quantity produced, as well as use the computed costs to determine a minimum cost output level for that business. In addition, you will also clearly explain how the average total cost of a new output level is affected by its share of fixed costs and variable costs. Questions 1. When ONLY total costs (TC) are known, such as shown in Table 1 below, explain how to calculate each of the following and provide at least one step-by-step example using the data from Table 1: a. Fixed costs (FC) UNIT 7 BU224 ASSIGNMENT TEMPLATE N FC=TC - VC The FC nor the VC aren't known in the first case, only the TC is known as $3200 so the FC=TC $3200 b. Variable costs (VC) VC =TC- FC 3 Page 1 of 4 807 words X English (United States) Text Predictions: On Accessibility: Good to go " Focus 95% 1 71.F Q Search W 8:47 PM ENG Sunny 8/21/2023W AutoSave on Fg ? " - BU224_Hanta Rajaonarivelo_Unit7 . Saved V Search Hantamalala Rajaonarivelo X File Home Insert Draw Design Layout References Mailings Review View Help Table Design Layout Comments Editing Share Find Times New Roman ~ 12 ~ A" A Aa Ap Lol Normal No Spacing Replace Past BIUvab x x A LA Headin; Heading 2 Title Dictate Reuse Editor Select Files Clipboard Font Paragraph Styles Editing Voice Reuse Files c. Average variable costs (AVC) AVC= VC/ Number of Units produced d. Average total costs (ATC) ATC=TC/ Number of units produced e. Average fixed costs (AFC) AFC= FC/ Number of units produced f. Marginal costs (MC) MC = Change in Total cost/Change in quantity 2. Table 1 shows the hourly production and total cost estimates for a new manufacturing firm wishing to enter the smartphone market. Fill in the blank cells in columns a., b., c., d., and e. on the table by computing the appropriate values. Table 1 3 Page 2 of 4 807 words X English (United States) Text Predictions: On Accessibility: Good to go " Focus 95% 1 71.F 8:47 PM Q Search ENG Sunny 8/21/2023W AutoSave Search Hantamalala Rajaonarivelo X on Fg ? " - BU224_Hanta Rajaonarivelo_Unit7 . Saved V View Help Table Design Layout Comments Editing Share File Home Insert Draw Design Layout References Mailings Review Find Times New Roman ~ 12 ~ A" A Aa Ap Normal No Spacing Headin: Heading 2 Title Lol Replace Dictate Reuse Editor Past BIUvab x x A LA Select Files Editing Reuse Files Font Paragraph Styles Voice Clipboard Smart cell Total Variable Average Average Average Marginal phones Cost Costs Variable Total Fixed Cost Cost (MC) produced (TC) (VC) Costs Costs (AFC) in an hour (AVC) (ATC) e a. b. d. $3,200 $3200 n/a n/a n/a n/a O 15 $3,525 $235 Enter (Enter your (Enter your (Enter your your response response response response here. here.) here.) here.) 30 $3,875 Enter Enter Enter Enter your (Enter your you your your response response response response response here.) here. here. here. here. 45 $4,250 Enter Enter (Enter your (Enter your (Enter your your your response response response response response here.) here.) here.) here. here. 60 $4,650 Enter Enter Enter your Enter Enter your your your esponse your response response response here. response here. here. here. here. 75 $5,075 Enter (Enter (Enter (Enter (Enter your your your your your response response response response response here.) here.) here.) here. here. $5,525 Enter Enter Enter Enter your (Enter your your your your response response 3 "D Focus 95% Page 3 of 4 807 words X English (United States) Text Predictions: On Accessibility: Good to go 8:48 PM 1 71.F Q Search 4 W ENG 8/21/2023 SunnyW AutoSave on Fg ? " - BU224_Hanta Rajaonarivelo_Unit7 . Saved V Search Hantamalala Rajaonarivelo X File Home Insert Draw Design Layout References Mailings Review View Help Table Design Layout Comments Editing Share Times New Roman ~ 12 ~|A" A Aa Ap Find Headin: Heading 2 Title Lol Normal No Spacing Replace Past BIUvab x x A LA Dictate Reuse Editor Select Files Clipboard Font Paragraph Styles Editing Voice Reuse Files 105 $6,725 Enter (Enter (Enter (Enter (Enter your you your your your response response response response response here.) here. here.) here. here. 120 $8,210 Enter Enter Enter Enter your (Enter your your your your response response response response response here.) here.) here.) here.) here.) UNIT 7 BU224 ASSIGNMENT TEMPLATE 135 $9,950 (Enter (Enter (Enter Enter your (Enter your your your your response response response response response here.) here.) here.) here.) here.) 3. Based on your calculations in completing the table in Question 2, what is this manufacturer's minimum cost output level? Explain your answer. (Enter your response here.) 4. According to the Chapter 1 1 section covering "Average Total Cost" in your textbook, when one additional unit is produced, two factors directly impact the change in average total costs, the 3 Page 3 of 4 807 words DX English (United States) Text Predictions: On Accessibility: Good to go " Focus 95% 1 71.F W 8:48 PM Sunny Q Search ENG 8/21/2023W AutoSave on Fg ? " - BU224_Hanta Rajaonarivelo_Unit7 . Saved V Search Hantamalala Rajaonarivelo X File Home Insert Draw Design Layout References Mailings Review View Help Table Design Layout Comments Editing Share Times New Roman ~ 12 ~|A" A Aa Ap Find Headin: Heading 2 Title Lol Normal No Spacing Replace Past BIUvab x x A LA Dictate Reuse Editor Select Files Clipboard Font Paragraph Styles Editing Voice Reuse Files 105 $6,725 Enter (Enter (Enter (Enter (Enter your you your your your response response response response response here.) here. here.) here. here. 120 $8,210 Enter Enter Enter Enter your (Enter your your your your response response response response response here.) here.) here.) here.) here.) UNIT 7 BU224 ASSIGNMENT TEMPLATE 135 $9,950 (Enter (Enter (Enter Enter your (Enter your your your your response response response response response here.) here.) here.) here.) here.) 3. Based on your calculations in completing the table in Question 2, what is this manufacturer's minimum cost output level? Explain your answer. (Enter your response here.) 4. According to the Chapter 1 1 section covering "Average Total Cost" in your textbook, when one additional unit is produced, two factors directly impact the change in average total costs, the 3 Page 3 of 4 807 words DX English (United States) Text Predictions: On Accessibility: Good to go " Focus 95% 1 71.F W 8:48 PM Sunny Q Search ENG 8/21/2023W AutoSave on Fg ? " - BU224_Hanta Rajaonarivelo_Unit7 . Saved V Search Hantamalala Rajaonarivelo X File Home Insert Draw Design Layout References Mailings Review View Help Table Design Layout Comments Editing Share Times New Roman ~ 12 ~ A" A Aa Ap Find Normal Headin: Heading 2 Title Lol No Spacing Replace Past BIUvab x x A LA Dictate Reuse Editor Select Files Clipboard Font Paragraph Styles Editing Voice Reuse Files 3. Based on your calculations in completing the table in Question 2, what is this manufacturer's minimum cost output level? Explain your answer. (Enter your response here.) 4. According to the Chapter 11 section covering "Average Total Cost" in your textbook, when one additional unit is produced, two factors directly impact the change in average total costs, the spreading effect, and the diminishing returns effect. In the following two situations, identify which effect is occurring, the spreading effect or the diminishing returns effect, and explain why. a. Production of the 10th gizmo resulted in an average total cost (ATC) of $20, but production of the 11th gizmo resulted in an average total cost of $22. (Enter your response here.) b. Production of the 10th gizmo resulted in an average total cost (ATC) of $20, but production of the 11th gizmo resulted in an average total cost of $18. (Enter your response here.) References: Author. (Date.) Title. Source. 3 Page 3 of 4 807 words DX English (United States) Text Predictions: On Accessibility: Good to go " Focus 95% 1 71.F 8:48 PM ENG Sunny Q Search 8/21/2023