Answer :
Answer:
Output Total Variable Total cost
0 $0 $250
25 200 450
50 300 550
75 375 625
100 600 850
125 875 1125
150 1200 1450
175 1625 1875
200 2000 2250
Explanation:
Note: The data in the question are merged together. They are therefor sorted before answering the question as follows:
Output Total Variable Total cost
0 $0 $250
25 450
50 300
75 375
100 600 850
125 1125
150 1200
175 1875
200 2000 2250
The explanation of the answer in now given as follows:
Since the Total Cost when the output is zero is equal to $250, that implies that the Total Fixed Cost is equal to $250. Also, since we have:
Total Cost = Total Total Variable + Total Fixed Cost ........ (1)
Where:
Total Fixed Cost = $250
Substituting Total Fixed Cost = $250 into equation (1), the two formulae to be used to fill the blanks are as follows:
Total Cost = Total Total Variable + $250 ...................... (2)
Total Total Variable = Total Cost - $250 ....................... (3)
Using equations (2) and (3) as applicable, the value for each of the blanks is calculated and filled (in bold italicized figures) and presented as follows:
Output Total Variable Total cost
0 $0 $250
25 200 450
50 300 550
75 375 625
100 600 850
125 875 1125
150 1200 1450
175 1625 1875
200 2000 2250