Determine total cost of product, Macroeconomics

Pucker Lemonade, Inc., is a small company that produces bottled lemonade. Pucker's fixed cost includes the monthly rental cost of the lemon-smashing machines, the bottling machines, and the production plant. Pucker's variable cost is the cost of other inputs--lemons and other ingredients, maintenance of the machines, and wages for the workers who work at the plant. The following table shows Pucker's estimated cost for output, measured in truckloads of lemonade that the company produces each month.

Number of lemon-smashing machines

Fixed cost

Variable cost





















10 truckloads

20 truckloads

30truckloads



















4

$16,000

$5,000

$8,000

$34,000



















5

$22,000

$4,500

$6,000

$30,000



















6

$28,000

$3,500

$5,500

$29,000



















1. If Pucker uses four lemon-smashing machines, what is the total cost of producing 10 truckloads of lemonade per month?

2. The current lease on Pucker's lemon-smashing machines is about to expire and the manager needs to decide how many of these machines to lease for the coming month. If Pucker needs to produce 20 truckloads of lemonade, how many machines should the company lease in the long run?

Posted Date: 3/11/2013 3:14:37 AM | Location : United States







Related Discussions:- Determine total cost of product, Assignment Help, Ask Question on Determine total cost of product, Get Answer, Expert's Help, Determine total cost of product Discussions

Write discussion on Determine total cost of product
Your posts are moderated
Related Questions
EXPLAIN THE 5 SECTOR MODEL (OPEN ECONOMY) IN INCOME DETERMINATION

You need to choose between two replacement compressor options. One costs $6400 and is 70% efficient. The other costs $9800 and is 85% efficient. Both have an average life of 8 year

Define the individual consumer surplus and total producer surplus. Individual consumer: Individual consumer surplus is the net profit to an individual buyer through the purc

disuss with an aid of a diagram the kinked demand curve

applicability of the lewis model in developing countries

show on the market for cheese that impact of what happened in the milk market.

5. In this question you should assume that the Marginal Propensity to Consume out of permanent income is one [i.e., no bequest motive + perfect consumption smoothing: c1, = c2 = c

circular flow of national income?

What is the size of the labor force if the unemployment rate is 6%, the population is 300 million, and the number unemployed is 6 million

Q. Is Household savings depend on GDP in the cross model? Household savings depends on Y since S H = Y - C - NT and C and NT both rely on Y. How it depends on Y can't be concl