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Solving a Numerical on Concepts of Costs

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Solving a Numerical on Concepts of Costs
Given the quantity and total fixed and variable costs, calculate the remaining costs to complete the following table: Units of Output (Q) | TFC | TVC | TC | AFC | AVC | AC | MC | 0 | 100 | 0 | 100 | N/A | N/A | N/A | 5 | 10 | 100 | 50 | 150 | 10 | 5 | 15 | 3 | 20 | 100 | 80 | 180 | 5 | 4 | 9 | 2.3 | 30 | 100 | 103 | 203 | 3.33 | 3.43 | 6.76 | 1.7 | 40 | 100 | 120 | 220 | 2.5 | 3 | 5.5 | 3 | 50 | 100 | 150 | 250 | 2 | 3 | 5 | 5 | 60 | 100 | 200 | 300 | 1.67 | 3.33 | 5 | 15 | 70 | 100 | 350 | 450 | 1.43 | 5 | 6.43 | |

TC = TFC + TVC TC0 = 100 + 0 = 100 TC10 = 100 + 50 = 150 TC20 = 100 + 80 = 180 TC30 = 100 + 103 = 203 TC40 = 100 + 120 = 220 TC50 = 100 + 150 = 250 TC60 = 100 + 200 = 300 TC70 = 100 + 350 = 450

AFC = TFC/Q AFC0 = 100/0 = Cannot divide by zero AFC10 = 100/10 = 10 AFC20 = 100/20 = 5 AFC30 = 100/30 = 3.33

AFC40 = 100/40 = 2.5 AFC50 = 100/50 = 2 AFC60 = 100/60 = 1.67 AFC70 = 100/70 = 1.43 AVC = TVC/Q AVC0 = 0/0 = Cannot divide by Zero AVC10 = 50/10 = 5 AVC20 = 80/20 = 4 AVC30 = 103/30 = 3.43 AVC40 = 120/40 = 3 AVC50 = 150/50 = 3 AVC60 = 200/60 = 3.33 AVC70 = 350/70 = 5 AC = AFC + AVC AC0 = N/A + N/A = N/A AC10 = 10 + 5 = 15 AC20 = 5 + 4 = 9 AC30 = 3.33 + 3.43 = 6.76 AC40 = 2.5 + 3 = 5.5 AC50 = 2 + 3 = 5 AC60 = 1.67 + 3.33 = 5 AC70 = 1.43 + 5 = 6.43 MC = ∆TVC/∆Q MC0 = (50 – 0)/(10 – 0) = 5 MC10 = (80 – 50)/(20 – 10) = 3 MC20 = (103 – 80)/(30 – 20) = 2.3 MC30 = (120 – 103)/(40 – 30) = 1.7 MC40 = (150 – 120)/(50 – 40) = 3 MC50 = (200 – 150)/(60 – 50) = 5 MC60 = (350 – 200)/(70 – 60) = 15

Reference
Keat, P. G., & Young, P. K. (2009). Managerial economics: Economic tools for today's decision makers. Upper Saddle River, N.J: Prentice Hall.

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