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Homework answers / question archive / Complete the table below with the information provided

Complete the table below with the information provided

Accounting

Complete the table below with the information provided.

 

Rate of Output Total Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost
0 $800        
1 1,000        
2 1,250        
3 1,550        
4 2,000        
5 2,500        

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For simplicity, I added two additional columns. One for the total fixed cost and one for the total variable cost. The first step is to calculate the fixed and variable costs for every quantity. Fixed costs are unchanged with output while variable costs are directly related to changes in output. So when the quantity is zero, the total cost is equal to the fixed cost (800). Therefore, the total fixed cost is equal to 800 for all output levels. Next to find the total variable cost, simply subtract the fixed cost from the total cost for every output level.

The marginal cost is the additional cost of an additional unit and can be calculated by change in total cost divided by the change in output. Finally, the average costs are calculated by dividing the total by the quantity. Below is the calculations for the first unit and the table below is filled in using these methods.

TC=FC+VC1000=800+VCVC=200andMC=ΔTCΔQMC=1000−8001−0MC=2001MC=200andAFC=FCQAFC=8001AFC=800andAVC=VCQAVC=2001AVC=200andAC=TCQAC=10001AC=1000TC=FC+VC1000=800+VCVC=200andMC=ΔTCΔQMC=1000−8001−0MC=2001MC=200andAFC=FCQAFC=8001AFC=800andAVC=VCQAVC=2001AVC=200andAC=TCQAC=10001AC=1000

 

Rate of Output Total Cost Fixed Cost Variable Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost
0 800 800 0        
1 1000 800 200 200 800 200 1000
2 1250 800 450 250 400 225 625
3 1550 800 750 300 266.67 250 516.67
4 2000 800 1200 450 200 300 500
5 2500 800 1700 500 160 340 500

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