Question

Problem 1. The following are the hypothetical data of costs and revenues of DIAMOND CANNING CO. , Tambler , General Santos City.

QUANTITY	TVC	TFC	TC	ATC/AC	AVC	AFC	MC	PRICE	TR
0	0	5,000						0
5000	8,500	5,000						5
10,000	19,000.	5,000						4
15,000	24,000	5,000						3
20,000	36,000	5,000						2
25,000	45,000	5,000						1

Requirements: Solve the different types of costs and complete the table. Using the graphing paper graph the following.

1. Graph all total costs ; TC, TVC, TFC, TR & PROFIT OR LOSS( look at in your second table the profit & loss for graphing.)

	X axis	Y - axis
scale	5,000	5,000
distance	5 boxes	5,000

2. Graph all the averages/ per unit costs ; AC/ATC, AVC, AFC and MC, AR,&MR

Q	AR	MR	PROFIT OR LOSS
0	-	-
5000
10,000
15,000
20,000
25,000

Specifications:

	X - axis	Y - axis
Scale	5,000	20
distance	5 boxes	2 boxes

Formula:

Profit/loss = TR – TC

        MC = NEW TC – OLD TC/ NEW QTY – OLD QTY

        TOTAL REVENUE (TR) = PRICE X QUANTITY

Answer 1

Quantity	TC=TVC+TFC	ATC/AC=TC/QTY	AVC=TVC/QTY	AFC=TFC/QTY	MC
0	5,000	0	0	0	-
5000	13,500	2.7	1.7	1	8,500
10,000	24,000	2.4	1.9	2	10,500
15,000	29,000	1.93	1.6	3	5,000
20,000	41,000	2.05	1.8	4	12,000
25,000	50,000	2	1.8	5	9,000

QTY	TR	AR	MR	PROFIT/LOSS
0	0	0	-	LOSS 5,000
5000	25,000	5	25,000	PROFIT 11,500
10,000	40,000	4	15,000	PROFIT 16,000
15,000	45,000	3	5,000	PROFIT 16,000
20,000	40,000	2	-5000	LOSS 1,000
25,000	25,000	1	-15,000	LOSS 25000