Question

Problem 1. The following are the hypothetical data of costs and revenues of DIAMOND CANNING CO....

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

  1. 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

Homework Answers

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
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