This module has focused on different business costs. For thisweek’s paper, go to your local grocery store and price theingredients for baking chocolate chip cookies. For simplicity,assume the ingredients for three dozen cookies are: One 16 oz. boxof sugar = $0.62 One 12 oz. bag of chocolate chips = $2.89 One 2lb. bag of flour = $0.99 One dozen eggs = $1.39 A fixed cost of $30to rent a kitchen with an oven for a day Assume in an hour you canbake two dozen cookies and that the cost of your time is $10 anhour.
Calculate the average total cost, average variable cost, averagefixed cost, and marginal cost for baking one dozen, two dozen,three dozen, four dozen, five dozen, six dozen, seven dozen, eightdozen, nine dozen, and ten dozen cookies.
Show your work for the calculations and create a table with justcost numbers. Create the graphs for each of the cost numbers. Graphthem on the same graph. Recalculate the costs assuming the cost torent the kitchen with an oven dropped to $15. Compare the newcalculations with the old calculations.
