The Quarterly Earnings of a Large Microcomputer Company Have Been

question 103

Essay

The quarterly earnings of a large microcomputer company have been recorded for the years 2011-2014.These data (in millions of dollars)are shown in the accompanying table.
$$\begin{array}{l}\text { Year }\\\begin{array} { | c | c c c c | } \hline \text { Quarter } & 2011 & 2012 & 2013 & 2014 \\\hline 1 & 60 & 65 & 68 & 74 \\2 & 75 & 83 & 85 & 90 \\3 & 93 & 98 & 102 & 106 \\4 & 62 & 69 & 71 & 75 \\\hline\end{array}\end{array}$$ Use an appropriate moving average to measure the quarterly variation by computing the seasonal (quarterly)indexes.

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Definitions:

Marginal Cost

The cost incurred from producing an additional unit of a product.

Average Variable Cost

The total variable costs (costs that change with the level of output) divided by the quantity of output produced, indicating the cost of producing an additional unit.

Marginal Cost

The boost in expenditure linked to creating an additional unit of a good or service.

Average Total Cost

Refers to the sum of all production costs divided by the total output produced, indicating the cost per unit of producing a good or service.