Best Birdies produces ornate birdcages. The company's average cost per unit is $22 when it produces 2700 birdcages. If $5700 of the costs are fixed, and the plant manager uses the cost equation to predict total costs, his forecast for 3500 birdcages will be

$75,315

Explanation:

Given the following ;

Average cost per unit = $22,when Total unit = 2700

Fixed cost(FC) = $5700

Variable Cost(VC)

In other to use the cost function in determining the total cost of 3500 unit, we need to determine the following ;

Total Cost{TC) of 2700 units :

unit size × average price per unit

2700 × $22 = $59,400

TC = $59,400

Cost equation :

TC = VC(unit size) + FC

$59,400 = VC(2700) + $5700

VC = $53,700 ÷ 2700

Variable Cost(VC) per unit = $19.89

Using the cost function ;

We can project the fixed cost when unit size = 3500

TC = VC(unit size) + FC

TC = $19.89(3500) + $5700

FC = $ 696615 + $5700

FC = $75,315

this business is a price setter.

hope this

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi