The following costs are for Optical View Inc., a contact lens manufacturer:

Required

1. Calculate and graph total costs, total variable cost, and total fixed cost.

2. For each level of output calculate the per-unit total cost, per-unit variable cost, and per-unit fixed cost.

3. Using the results from requirement 2, graph the per-unit total cost, per-unit variable cost, and per-unit fixed cost, and discuss the behavior of the per-unit costs over the given output levels.

Transcribed Image Text:

Output in Units Variable Costs Total Costs Fixed Costs 250 $4,750 $ 7,500 $12,250 13,750 15,250 16,750 4,750 4,750 4,750 300 10,500 12,000 350 400