$30
Determine the breakeven output and total sales revenues
and draw the cost-volume-profit chart
Determine the output that would generate a total profit of
$60,000 and the total sales revenues at that output level;
draw the cost-volume-profit chart.
Spreadsheet problem 1: For the following table, calculate
in Excel the average fixed costs (AFC), the average
variable cost (AVC), the average total costs (ATC), and
the marginal costs (MC).(note total fixed cost=$30)
Salvatore’s Chapter 9:
a) Problems: 7, 11, and spreadsheet problem 1.
Problem 7: From figure 9-4, determine the effect of a 33
percent tariff on commodity X
Problem 11: Most book publishers pay authors a
percentage of the revenue from book sales. Explain the
conflict that this creates between publishers and authors.
Spreadsheet problem 1: If the market supply function of a
commodity is QS=3,250 and
a) the market demand function is QD=4,750-50P is
expressed in dollars, use Excel to calculate values QD and
QS for P from 25 to 50 in 1’s.
b) If the market demand increased to Q’D=5,350-50P,
what is the equilibrium price?