The Table Below Gives Amy's Total Cost Schedule for Producing

question 67

Essay

The table below gives Amy's total cost schedule for producing holiday wreaths.Amy is a perfect competitor and can sell each wreath for $9.
a.Complete the table by calculating Amy's total revenue and her profit or loss schedule.
$$\begin{array} { c c c c } \begin{array} { c } \text { Quantity } \\\text { (wreaths) }\end{array} & \begin{array} { c } \text { Total cost } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Total revenue } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Profit or loss } \\\text { (dollars) }\end{array} \\\hline 0 & 1 & & \\1 & 10 & & \\2 & 18 & & \\3 & 24 & & \\4 & 28 & & \\5 & 33 & & \\6 & 40 & & \\7 & 49 & & \\8 & 60 & & \\9 & 73 & & \\\hline\end{array}$$
b.When Amy is producing 4 wreaths,what is her total cost? What is her total revenue? What is her economic profit or economic loss?
c.What number of wreaths maximizes Amy's profit?

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate product cost information.

Activity-Based Costing

An accounting method that identifies and assigns costs to overhead activities and then assigns those costs to products.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the actual consumption of each.

Activity-Based Costing

A costing methodology that assigns costs to products or services based on the activities and resources that go into their production or provision, aiming for more accurate cost allocation.