Question: Exercise C4 (Cost functions and values) (5 points) Controlling department analyses a linear total cost function C [] which can be split into fixed costs
Exercise C4 (Cost functions and values) (5 points) Controlling department analyses a linear total cost function C[] which can be split into fixed costs (CF: in ) and variable (total) costs ( Cv : in ). Additionally marginal costs (MC) and total per-unit costs (c) are analysed. In the figure below the values of the total per unit costs c[12,50 per unit X ] for a production volume of 4 [units] as well as the variable per unit costs cv[7,50 per unit X] for a production volume x of 8 [units] are provided. Please calculate/ derive the following cost values for the given production volume x : a) The function of the total costsC(x) b) Fixed costs CF c) Total variable per-unit costs c1(x=4) d) Total per-unit costs c(x=1) e) Total costs C(x=1)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
