The following table provides limited information about your costs. Average total

Question

The following table provides limited information about your costs. Average total cost for a given quantity of output is obtained by adding total fixed cost and total variables cost at that level of output and then dividing by the quantity of output. Remember that your company's total fixed cost is $180000. 4.2 On the graph below, use the green points (triangle symbol) to plot the average total cost (ATC) curve for your construction company. To make your values fit on the graph. round to the nearest $5000. For example , the point $193.333 rounds to $195.000. (Hint: Calculate the average total cost at each quantity on a piece of scratch paper first.)

Explanation / Answer

The answers of '?' are done bold.

Notes:
1)The Raw materials Cost is directly proportional to quantity demanded. Cost of 1 unit is $20,000 thus for 6 units it is 6 * $20,000=$120,000

2) The Total Variable Cost = Raw Materials Cost + Labor Cost.
So all the empty data in second and third column was calculated in this manner.

3) Total Cost = Total Variable Cost + Total Fixed Cost = Total Variable Cost +180,000

4)Average Total Cost = Total Cost/Quantity

Quantity Raw Material Cost ($) Labor Cost ($) Total Variable Cost ($) Total Cost ($) Average Total Cost ($) 1 20,000 140,000 160,000 340,000 340,000 2 40,000 260,000 300,000 480,000 240,000 3 60,000 360,000 420,000 600,000 200,000 4 80,000 480,000 560,000 740,000 185,000 5 100,000 620,000 720,000 900,000 180,000 6 120,000 780,000 900,000 1,080,000 180,000 7 140,000 960,000 1,100,000 1,280,000 182,857 8 160,000 1,160,000 1,320,000 1,500,000 187,500 9 180,000 1,380,000 1,560,000 1,740,000 193,333 10 200,000 1,620,000 1,820,000 2,000,000 200,000

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