Individual Technical Problem Below are the variable costs of a vodka supplier ASSUME Fixed Costs...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Individual Technical Problem Below are the variable costs of a vodka supplier ASSUME Fixed Costs = $100 and the variable costs are as listed below: Qty VC 200 N lulululu 0 $ 1 $ $ 3 $ 4 $ 5 $ 6 $ 7 $ 8 $ 5 $ 300 480 700 1,000 1,400 1,950 2,700 1. Calculate TC, MC, AVC, AFC and ATC for all Qty options. 2. State what the breakeven and shut down prices are. For problems 3-6, explain what the short term production decision would be: 3. Assume the market price was $225, would the firm produce? At what Qty level and what would be the resulting profit? 4. Assume the market price was $350, would the firm produce? At what Qty level and what would be the resulting profit? 5. Assume the market price was $175, would the firm produce? At what Qty level and what would be the resulting profit? 6. Assume the market price was $125, would the firm produce? At what Qty level and what would be the resulting profit? 7. What would happen in the long term if the short term decision was to continue producing at a loss? When specifically would this change occur
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
