10. Suppose that Bill owns an automobile collision repair shop and the table bel
ID: 2440422 • Letter: 1
Question
10. Suppose that Bill owns an automobile collision repair shop and the table below shows the quantity of cars repaired per month according to how many workers Bill hires. Assume he pays each worker $4,000 per month and his fixed cost equals $5,000 per month Using the inforhation proided, complete the table given below. (Enter your responses rounded to two decimal places.) Quantity of Quantity of Cars per Average Total Month 0 Variable Cost Total Cost orkers 0 Fixed Cost Cost $5,000 20 2 30 13 40 4 50 5 22 ptsExplanation / Answer
Working notes:
(1) Fixed cost (FC) = $5,000
(2) Variable cost (VC) = Wage rate x Number of workers (L) = 4,000 x L
(3) Total cost (TC) = FC + VC
(4) Average total cost (ATC) = TC / Quantity of cars (Q)
Therefore, completed table as follows.
L Q FC VC TC ATC 0 0 5000.00 0.00 5000.00 - 1 20 5000.00 4000.00 9000.00 450.00 2 30 5000.00 8000.00 13000.00 433.33 3 40 5000.00 12000.00 17000.00 425.00 4 50 5000.00 16000.00 21000.00 420.00 5 55 5000.00 20000.00 25000.00 454.55Related Questions
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