7. Kermit's Kandles Ltd. sells candles at a price of $8 each. Following is a table...

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7. Kermit's Kandles Ltd. sells candles at a price of $8 each. Following is a table showing Kermit's fixed and variable production costs. Units of Output per Day 0 100 200 300 400 500 600 $4800 4000 3200 2400 1600 800 Fixed Costs $400 0 400 400 400 400 400 400 (a) Complete the remaining 2 columns in the table. (b) On the graph below, draw the total revenue, total costs, and vari- able costs curves. 100 Variable Costs $0 1000 1700 200 2200 2500 3200 4400 $ 400 Total Costs Total Revente 500 300 Output (c) The graph indicates that the minimum level of output (sales) required for this firm to start up in business (its break-even point) is units per day. (d) The graph indicates that, before this firm should go out of business, its sales should fall below a level of units per day. Explain the reasons for your answers to (c) and (d). 600 7. Kermit's Kandles Ltd. sells candles at a price of $8 each. Following is a table showing Kermit's fixed and variable production costs. Units of Output per Day 0 100 200 300 400 500 600 $4800 4000 3200 2400 1600 800 Fixed Costs $400 0 400 400 400 400 400 400 (a) Complete the remaining 2 columns in the table. (b) On the graph below, draw the total revenue, total costs, and vari- able costs curves. 100 Variable Costs $0 1000 1700 200 2200 2500 3200 4400 $ 400 Total Costs Total Revente 500 300 Output (c) The graph indicates that the minimum level of output (sales) required for this firm to start up in business (its break-even point) is units per day. (d) The graph indicates that, before this firm should go out of business, its sales should fall below a level of units per day. Explain the reasons for your answers to (c) and (d). 600

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a To complete the table we need to calculate the fixed costs for each output level Fixed costs Fixed ... View the full answer