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A company produces gold picture frames. The cost per picture frame is: Each worker eams $30,000 annually in salary and benefits. The number of workers changes based on the level of production. This means this is a variable cost. The artist who creates the designs on the picture frames is paid $25,000 annually. Senior management are paid a total of $200,000 annually. Other annual costs are: Tha frillmainn nmelumtinn ie nnecihla For Questions 4 to 7, yeu need to fill in the chart for each question. You need to STATE how many workers, the level of production and the profit you will make. Your costs, quantities and \# of workers will be the same as you calculated in Question 1. 4. If the price per picture frame was fixed at $35, what would you do? Remember, in the short run you can't alter fixed costs, you can just decide where to set the level of production. You need to calculate total revenue and profit or loss for each level as you are given the average revenue. Remember to state both what level of production you would choose and what dollar profit you would make. ( 1 mark) 5. If the price per picture frame was fixed at $26.50, what would you do in the SHORT RUN? Again, remember that you have to keep paying your fixed costs in the short run. Fill in the chart and state what level of production you would use. State what is your profit at this level? (1 mark) 6. If the price per picture frame was fixed at $18.60, what would you do in the SHORT RUN? Fill in the chart and state what level of production you would use. (1 mark) 7. If marketing data showed you could sell the following number of picture frames at the prices indicated, how many picture frames would you produce and what would be your profit? Fill in the chart. (1 mark)

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