Table 13-11 measures of cost for very brady poster factory quantity of posters variable costs total costs fixed costs 0 $10 1 $1 2 $3 $13 3 $6 $16 4 $10 5 $25 6 $21 $10 refer to table 13-11. what is the variable cost of producing 5 posters?

Given the table below which measures the cost for Very Brady Poster Factory



Part A:

From the table, the fixed cost is $10 and the total cost of producing 5 posters is $25.

Therefore, the variable cost of producing 5 posters is given by Total cost - fixed cost = $25 - $10 = $15.

Part B:

The marginal cost is the cost of producing one additional unit of poster.

From the table, the total cost of producing the 6 posters is given by $21 + $10 = $31 and the total cost of producing 5 posters is $25.

Therefore, the marginal cost of producing the 6th poster is given by the total cost of producing 6 posters minus the total cost of producing 5 posters = $31 - $25 = $6.

Explanation:

                          Monthly Cash budget for January - March

Particulars                 January     February         March

Opening  balance     30,000       30,000         69,294

Cash received          525,000     400,000       450,000

Total                          555,000     430,000       519,294

Cash payment          (475,000)     (350,000)    (525,000)

Interest (60000*1%)   (600)    10600*1%(106)         0

                                  79,400        79,894            (5,706)

Loan repayment        (49,400)      (10,600)          35,706

Minimum cash balance of 30,000 required.

(79,400-30,000)  

(60,000-49,400)                    

Cash balance            30,000          69,294           30,000

Loan repayment.

January

Opening balance  60,000

Repayment            (49,400)

balance                   10,600

February

Opening balance     10,600

repayment(balance)  (10,600)

March

35,706