b. The following are costs and revenues incurred by an ice cream company in short-run production. Fixed cost (month) : RM Rent 5 000 Interest on loan 1 200 Premium insurance 600 Variable cost (month) : Wages Maintenance 8 800 300 Utilities 2 200 Raw material 9 600 Transportation Owners salary before start producing own ice cream firm 2 000 54 000 Revenue (month): Price per one cone ice cream Operation days Average customer per day RM5 26 days 250 customers Based on the above information, calculate: i. Total revenue ii. Total cost iii. Economic profit From the answer to question (iii), what can you advise the ice cream maker?
b. The following are costs and revenues incurred by an ice cream company in short-run production. Fixed cost (month) : RM Rent 5 000 Interest on loan 1 200 Premium insurance 600 Variable cost (month) : Wages Maintenance 8 800 300 Utilities 2 200 Raw material 9 600 Transportation Owners salary before start producing own ice cream firm 2 000 54 000 Revenue (month): Price per one cone ice cream Operation days Average customer per day RM5 26 days 250 customers Based on the above information, calculate: i. Total revenue ii. Total cost iii. Economic profit From the answer to question (iii), what can you advise the ice cream maker?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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