Assignment title: Management
A. Create an original cost structure exercise/problem for your peers to answer
B. An automotive repair shop has a fixed operating cost of $2,500 per day. The
variable cost per repair is $225.
If the auto shop completes 6,000 repairs in the year:
What are the expected total costs?
What are the total costs if they complete only 3,500 repairs?
What if they complete 8,000 repairs?
What is the average cost per repair for 3,500, 6,000, and 8,000 completed
repairs?
C. Orchid Corporation is a flower distributor that has been very profitable for more
than a decade. Last year the company did not see the same type of profit results as
in previous years and wanted to do a cost structure analysis for which they have
asked us to help. Using the table below, identify the total cost, variable cost and the
marginal cost for this business. The quantity distributed is 200 flower units per
employee.
Number of
Employees
Quantity
Distributed
Fixed
Costs
Variable
Costs
Total
Costs
Marginal
Costs
0 0 $5,000
1 200 $5,000
2 $5,000
3 $5,000
4 $5,000
5 $5,000
Marginal Cost:
Total Costs:
Variable Cost: