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MANAGERIAL ECONOMICS se Score: Rating: ‘TOPIC: THEORY AND COST OF PRODUCTION IN THE SHORT-RUN ABH-GME Company is producing Fruit Salad. it has a substantial capital/capacity to supply the market ‘need. Therefore, the company is very competitive when it comes to production and this is a good signs that the company is also capable in meeting the increasing demand of its customers. The President, Mr "Napulis, would like to identify & classify as to what kind of cost should be allocated. The following variable and fixed inputs and its equivalent price are needed in the production of Fruit Salad. VARIABLE & FIXED INPUTS PRICE Can of Fruit cocktail (1kg) 130.00 [ akg of young coconut (buko), shredded 200.00 Telephone bill (land line) 450.00 1 bottled sugar palm fruit (kaong), drained 80.00 Building monthly rental 6,000.00, 1 pack of cups (50pcs) 100.00 Bottled coconut gel (nata de coco), drained 90.00 Can of pineapple chunks, drained 60.00 Freezer 5,000.00 ‘I can sweetened condensed milk 35.00 Cream 45.00 1tadle 40.00 Sweet corn 50,00 Mixing bow! (big) 300.00 Electricity Bill 6,000.00 Water Bill 700.00 [ Cell phone unit 600.00 Cell phone load 500.00 worker 250.00 To produce 175,000 cups of Fruit Salad per month, the company needs to use the following variable inputs and fixed inputs: EXPENSES VARIABLE & FIXED INPUTS 20 Cans of Fruit cocktail (1kg) ‘SOkgs of young coconut (buko), shredded Telephone Bill Landline 10 Bottled sugar palm fruit (kaong), drained Business space monthly rental Pack of cups (5Opcs) oy de coco), drained 10 Bottled coconut gel (nata