The table below shows some changes in costs and revenue as output changes.

1. Complete the table below by filling in the gaps. (4 marks)

Costs and Revenue

Output level Sales Revenue Fixed costs Variable costs Total costs Profit
0 0
1
2 500
3 900
4
5 1500
6 1200

2. Identify the total fixed costs (1 mark)

3. Calculate the selling price of the product (2 marks)
4. Calculate the average variable cost (2 marks)
Download the PDF version of the Costs and revenues worksheet here

Answers:

$500

(900/3) or (1500/5) = $300

(1200/6) = $200

Deduct 1 mark for each error. Apply the own figure rule (error carried forward) as appropriate.
Costs & Revenues ($)
Output level Sales revenue Fixed costs Variable costs Total costs Profit
0 0 500 0 500 -500
1 300 500 200 700 -400
2 600 500 400 900 -300
3 900 500 600 1,100 -200
4 1,200 500 800 1,300 -100
5 1,500 500 1,000 1,500 0
6 1,800 500 1,200 1,700 100