Computing Total Costs
How do I find total cost?
Given: A publisher faces the following demand schedule for the next novel of one of its popular authors. The author is paid $2 million to write the book and the cost of publishing EACH book is a constant $10. ( I have to compute total cost at each quantity)
Price Quantity Demanded
$100 0
$90 100,000
$80 200,000
$70 300,000
$60 400,000
“Price” and Quantity Demanded” are two different columns
Total cost = Fixed cost + variable cost
$2 million is the Fixed cost
$10 is the variable cost per unit
total variable cost is $10 x the quantity produced
sample computation below:
@ $100 price/unit the total cost is:
$2million + $10 ( 0 ) = $2million
@ $90
total cost = $2million + $10 (100,000) = $3million
@ $60
total cost = $2million + $10 (400,000) = $6million
hope you got the point now. good luck!
Stocks & Investments : How to Calculate a Return on an Investment
|
|
Simulation Modeling Methods: To Reduce Risks and Increase Performance (CD-ROM included) (H.James Harrington Performance Improvement) £25.36 … |
|
|
Computing the total cost of archival processing (Technical leaflet series) … |
|
|
The IT Value Network: From IT Investment to Stakeholder Value (Wiley) Learn to measure and manage the real value of IT investment and spendingIT investments are becoming more than just business enablers or assets on the books; they provide capability that can drive the business. Thought leadership should migrate towards information investment, getting a bigger bang for the buck from the ‘I’ in IT and from the ‘I’ in CIO.Your organization needs a new kind of IT inves… |
