CAn someone please help me with this questions , thanks:
1.Suppose you own a video rental store. List some of the fixed inputs and variables inputs you would use in operating the store.
2.Ace Manufacturing produces 1,000 hammers per day. The total fixed cost for the plant is $5,000 per day, and the total variable cost is $15,000 per day. Calculate the average fixed cost, average variable cost, average total cost, and total cost at the current output level.
2007-03-06 05:23:48 · 4 answers · asked by CM 1 in Social Science ➔ Economics
Without doing your homework for you, remember that fixed inputs are those that cost the same regardless of the output (sales volume), while variable inputs only depend upon sales volume, and in fact do not exist where there is no volume.
Average _____ cost is simply equal to the total _____ cost of production divided by the number of units produced.
2007-03-06 05:43:04 · answer #1 · answered by Veritatum17 6 · 1⤊ 0⤋
1. Fixed= rent, salary wages,
Variable=utilities, videos, maintenance
2. AFC=$5 per hammer AVC=$15 per hammer Total cost=$20 per hammer
2007-03-06 09:58:30 · answer #2 · answered by Santa Barbara 7 · 0⤊ 0⤋
wages are not fixed, they are dependent on demand and staffing. If you have a sale coming up they are variable. Some things can be both fixed and variable.
Usual fixed costs in a business.
Rent, garbage removal, phone lines (unless you are charged for long distance), property taxes if any, licensing fees...
variable could be anything
electricity
water
purchases
2007-03-07 03:22:38 · answer #3 · answered by Anonymous · 0⤊ 0⤋
2.
AFC = 5000/1000 = 5 per day
AVC = 15000/1000 = 15 per day
ATC = AFC + AVC = 20 per day
2007-03-06 23:58:17 · answer #4 · answered by Jonathan R 3 · 0⤊ 0⤋