Your boss asks you to calculate some of the information the spy was not able to obtain. Fill in the blanks below with the missing information.

Question

Output quantity	Total variable cost	Total cost
0	$0	$250
25		450
50	300	X
75	375
100	600	850
125	X	1125
150	1200	X
175		1875
200	2000	2250

 

Answer 1

Okay,

So this looks more difficult than it actually is. The first box is actually very simple. You know that the total cost is $450 and the previous total cost at 0 units was $250. Since the fixed cost does not change, that means the total variable cost is the difference: $200.

The second box is also simple. We know from the first answer that at zero units the total cost is going to be $250, so that means the fixed cost is $250. Knowing that the fixed cost is $250 and the variable cost is $300, the total cost must be $55 for the second box and $625 for the third box. From there, it just a matter of whether you add $250 to find the total cost or subtract $250 to find the total variable cost.

At 125 units it is $1,125-$250=$875

At 150 units it is $1,200+$250=$1,450

At 175 units it is $1,875-$250=$1,625