Cost Schedule before growth: Quantity Total CostAverage Total Cost Manny Movies
ID: 1139560 • Letter: C
Question
Cost Schedule before growth: Quantity Total CostAverage Total Cost Manny Movies Patra Pictures Sean Showings 340 120 50 52,500 : 15,500 8,123 Cost Schedule after growth: QuantityTotal 368 132 Total Cost Average Total Cost Manny Movies Patra Pictures 53,230 Sean Showings 742 When Patra Pictures expands movie production from 120 to 132, her total cost increased from $15,500 to $17,050. We can infer that her average total cost are falling. are rising remained the same Rita Restaurant has three technology options below. If workers cost $40 and machines cost $70, then which option would yield the lowest cost? # of Workers Technolo Technology O Labor Cost Machine Cost Total Cost Technology Option 3 Technology Option 1 Technology Option 2Explanation / Answer
Quantity
Total Cost
Average cost
Manny Movies
340
52,500
154.41
Patra Picures
120
15,500
129.17
Sean showings
50
8,123
162.46
Average cost is unit cost of production. It is the cost per unit of output. It can be calculated by dividing the total cost by the number of output produced.
Cost schedule after growth.
Quantity
Total Cost
Average Cost
Manny Movies
368
53,230
144.64
Patra Picures
132
17,050
129.16
Sean showings
55
8,742
158.94
When Patra Pictures expands movie production from 120 to 132, her total cost increased from $ 15,500 to $ 17,050. We can infer that her average total cost:
Answer: remained the same
Labour cost
Machine Cost
Total Cost
Cost of Technology
(Option-1)
6× 40=240
2×70=140
240+140=380
Cost of Technology
(Option-1)
4×40=160
4×70=280
160+280=440
Cost of Technology
(Option-1)
2×40=80
6×70=420
80+420= 500
The option which would yield the lowest cost is
Answer: Technology option -1
Quantity
Total Cost
Average cost
Manny Movies
340
52,500
154.41
Patra Picures
120
15,500
129.17
Sean showings
50
8,123
162.46