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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 401 Weeks Ago, 6 Days Ago |
| Questions Answered: | 66690 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Vintage Cellars Vintage Cellars manufactures a 1,000-bottle wine storage system that maintains optimum temperature (55-57 A?°F) and humidity (50-80%) for aging wines. The system has a backup battery for power failures and can store red and white wines at different temperatures. The following table depicts how average cost varies with the number of units manufactured and sold (per month): Quantity Average Cost 1 $12,000 2 10,000 3 8,600 4 7,700 5 7,100 6 7,100 7 7,350 8 7,850 9 8,600 10 9,600 Required: 1.Prepare a table that computes the total cost and marginal cost for each quantity between 1 and 10 units. 2.What is the relation between average cost and marginal cost? 3.What is the opportunity cost of producing one more unit if the company is currently producing and selling four units? 4.Vintage Cellars sells the units for $9,000 each. This price does not vary with the number of units sold. How many units should Vintage manufacture and sell each month?
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