Question #7329

Marty pays each of his workers $0.80 per day. The cost of his other variable inputs is $0.50 per cup of yogurt. His fixed cost is $100 per day.

What are Marty's variable cost and total cost when he produces 110 cups of yogurt? 200 cups?

What are Marty's variable cost and total cost when he produces 110 cups of yogurt? 200 cups?

Expert's answer

If Marty produces 110 cups of yougurt per day:

Martsy`s other& variable costs $0.50*110=$55.0

If Marty produces 200 cups of yougurt per day:

Martsy`s other& variable costs $0.50*200=$100.0

Fixed cost per day = $100

In case Marty has one worker, than cost for workers will be $0.80 per day

In case Marty has more than one worker than cost will be $0.80*N, N-quantity of workers

FOR 110 cups:

Variable cost =$55.0 +$0.80*N

TOTAL Cost = $55.0+$0.80*N + $100= $155+$0.80*N

FOR 200 cups:

Variable cost =$100.0 +$0.80*N

TOTAL Cost = $100.0+$0.80*N + $100= $200+$0.80*N

Martsy`s other& variable costs $0.50*110=$55.0

If Marty produces 200 cups of yougurt per day:

Martsy`s other& variable costs $0.50*200=$100.0

Fixed cost per day = $100

In case Marty has one worker, than cost for workers will be $0.80 per day

In case Marty has more than one worker than cost will be $0.80*N, N-quantity of workers

FOR 110 cups:

Variable cost =$55.0 +$0.80*N

TOTAL Cost = $55.0+$0.80*N + $100= $155+$0.80*N

FOR 200 cups:

Variable cost =$100.0 +$0.80*N

TOTAL Cost = $100.0+$0.80*N + $100= $200+$0.80*N

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