Feb 21

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Feb 21

To prepare the cost schedule, we first need to calculate the Total Fixed Cost (TFC), Total Variable Cost (TVC), Total Cost (TC), Average Fixed Cost (AFC), Average Variable Cost (AVC), Marginal Cost (MC), and Average Total Cost (ATC) for different levels of output (Q).

Given cost function: C = 135 + 75Q - 15Q² + Q³

Let's calculate the costs for different levels of output (Q):

Q | C = 135 + 75Q - 15Q² + Q³ | TFC | TVC | TC | AFC | AVC | MC | ATC

-----------------------------------------------------------------------

0 | 135 | 135 | 0 | 135 | - | - | - | -

1 | 195 | 135 | 75 | 210 | 135 | 75 | 75 | 210

2 | 315 | 135 | 120 | 255 | 67.5 | 60 | 45 | 127.5

3 | 495 | 135 | 135 | 270 | 45 | 45 | 15 | 90

4 | 735 | 135 | 120 | 255 | 33.75 | 30 | 30 | 63.75

5 | 1035 | 135 | 75 | 210 | 27 | 15 | 15 | 42

In the above table:

- TFC is the Total Fixed Cost, which remains constant at 135 for all levels of output.

- TVC is the Total Variable Cost, calculated by subtracting TFC from TC.

- TC is the Total Cost, which is the sum of TFC and TVC.

- AFC is the Average Fixed Cost, calculated by dividing TFC by the quantity produced.

- AVC is the Average Variable Cost, calculated by dividing TVC by the quantity produced.

- MC is the Marginal Cost, calculated as the change in TC when one more unit is produced.

- ATC is the Average Total Cost, calculated by dividing TC by the quantity produced.

This cost schedule provides a breakdown of the different cost components at various levels of output, helping in analyzing the cost structure of the given cost function.

Given cost function: C = 135 + 75Q - 15Q² + Q³

Let's calculate the costs for different levels of output (Q):

Q | C = 135 + 75Q - 15Q² + Q³ | TFC | TVC | TC | AFC | AVC | MC | ATC

-----------------------------------------------------------------------

0 | 135 | 135 | 0 | 135 | - | - | - | -

1 | 195 | 135 | 75 | 210 | 135 | 75 | 75 | 210

2 | 315 | 135 | 120 | 255 | 67.5 | 60 | 45 | 127.5

3 | 495 | 135 | 135 | 270 | 45 | 45 | 15 | 90

4 | 735 | 135 | 120 | 255 | 33.75 | 30 | 30 | 63.75

5 | 1035 | 135 | 75 | 210 | 27 | 15 | 15 | 42

In the above table:

- TFC is the Total Fixed Cost, which remains constant at 135 for all levels of output.

- TVC is the Total Variable Cost, calculated by subtracting TFC from TC.

- TC is the Total Cost, which is the sum of TFC and TVC.

- AFC is the Average Fixed Cost, calculated by dividing TFC by the quantity produced.

- AVC is the Average Variable Cost, calculated by dividing TVC by the quantity produced.

- MC is the Marginal Cost, calculated as the change in TC when one more unit is produced.

- ATC is the Average Total Cost, calculated by dividing TC by the quantity produced.

This cost schedule provides a breakdown of the different cost components at various levels of output, helping in analyzing the cost structure of the given cost function.