Determine total cost of product, Macroeconomics

Assignment Help:

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?


Related Discussions:- Determine total cost of product

Fixed unemployment, Is the natural rate of unemployment fixed? Why or why n...

Is the natural rate of unemployment fixed? Why or why not? How are full employment and the natural rate of unemployment related? Is the actual rate of unemployment currently greate

Industrial production and agricultural production, Industrial Production an...

Industrial Production and Agricultural Production  Industrial production and agricultural production are aggregate measures of sectoral outputs. It is a common practice to divi

Aggregate supply in the short run, Aggregate Supply in the Short Run P...

Aggregate Supply in the Short Run Production takes place in business sector on the basis of an expected price for its output. However, costs are incurred in anticipation of sa

Define the labor market, Q. Define the Labor Market? A significant macr...

Q. Define the Labor Market? A significant macroeconomic variable is the total amount of labor which is used in a certain time period. Amount of labor and amount of capital are

What is probability the time between two successive calls, A one-car taxi c...

A one-car taxi company receives an average of 18 calls per day. The receptionist takes down details of the requested journey and relays them to the driver by radio. Each passenger'

Supply and Demand, During the 1990s, technological advance reduced the cost...

During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use supply and demand diagrams, how the following markets are affected in terms of pr

Answer for questions, How can we answer in Economic terms this questions: W...

How can we answer in Economic terms this questions: Why should the government consider to increase tax on cigarette

Fall in prices and increase in quantity explain, /* Style Definitions */ ...

/* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-prior

Determine the net terminal year cash flow, A company is assessing a propose...

A company is assessing a proposed 4-year project.  The depreciable cost will involve the following: $300,000 for the equipment, $20,000 for shipping, and $30,000 for installation.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd