Calculate total cost using Average Total Cost
I am supposed to use the following information to answer What is the total cost of 3,000,000 pairs
I'm not sure if my answer is correct or not.
3,000,000 * $20.00 = $60,000,000
Is this correct? If not could you show your work so that I can understand how to do it?
Athletic Shoe Production
Normal Profit $6.00
Leather costs $2.00
Rubber costs $3.50
Metal costs $ .50
Cotton costs $3.00
Assembly $5.00
Total: $20.00 This is the lowest possible cost for the production of a single pair of shoes.
It is also the Average total cost (ATC) of the profit maximizing or loss minimizing quantity of
shoes: 3,000,000
Plant & Equipment 20% if total assembly cost (not ATC)
Labor 80% of total assembly cost (not ATC)
By OTA: Jiong Tu, PhD (IP)
OTA Rating: 4.8/5
Your Price: $2.19 (original value ~$11.97)
What's included:
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