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Mathematics, 29.04.2021 20:30 debrielcalderon

Notes: Total revenue (TR) is the sum of income received by a business from its trading activities.

TR = P Γ— Q.

Average revenue (AR) is the amount a business receives from its customers per unit of a good or service sold.

Average Fixed Cost (AFC): AFC= Total fixed costs / Output

Profit = Total Revenue - Total Costs

Profit Margin = Price - Average Variable Cost

Total Variable Costs (TVC): TVC= Raw materials per unit x units of output per month

TVC = Average Variable Cost x Quantity

Total Cost (TC): TC= TVC + TFC

Average Cost (AC) = Total Cost / Quantity

Average Total Costs (ATC): ATC= (Total Fixed Cost + Total Variable Costs) / Quantity

question:

Drones is a newly established manufacturer of drones for recreational use. The firm produced 180 drones last month and sold these for an average price of $230. Thion Drones had average variable costs of $190 per drone. Its fixed costs per month are $4,500.

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Notes: Total revenue (TR) is the sum of income received by a business from its trading activities....
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