Name: Date:

Subject and Course: Score:

Instruction and Friendly reminder: Answer the following questions based on your best
knowledge. Blank answers have corresponding deductions in your overall score. Cheating
will penalized as well as misbehavior during the exam. I hope you reviewed your notes.
Enjoy and have a good time.

ASSUMING THAT THE COMPANY SELL ITS PRODUCT@ 29.5 EACH. COMPLETE THE TABLE AND SHOW

YOUR SOLUTIONS.

No. of FIX VARIABLE TOTAL AVE. AVE. TOTAL AVE. MARGINAL AVE.
output COST COST COST FIX VARIABLE PROFIT PROFIT COST COST
COST COST
1 20 30
2
3
4
5
6 40
7
8
9
10

 HINT FOR FINDING VARIABLE COST VIA ASSUMING THE EQUATION Y= ax + b

 DUE TO THE RELEVANT RANGE AND MAXIMUM CAPACITY FIX COST STARTING AT PRODUCT SIX
WILL INCREASE BY 20.
 THERE WILL BE AN ADDITIONAL 1.5 IN THE VARIABLE COST IN EACH PRODUCT STARTING AT 6.