Company A has the following data for a 10 week session.
Charge per person $520 per week
Fixed costs $250,000 per session
Variable cost per person $200 per week
Capacity 100 persons
a) Find the equations for total cost and total revenue.
b) What is the total number of persons that will allow the place to just break even?
c) If the pace operates at 50% capacity, what is the profit or loss for the 10-week session?
d) Find the marginal and average costs per session at 50% capacity?
As we know total cost are showing the sum of fixed cost and variable cost of a firm and total revenue showing the per unit... View the full answer
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a) Fixed cost + Variable Cost = Cost per person per week * number of week * capacity b... View the full answer