Final answer:
The markdown on the computer system after a 20 percent discount on the $618 selling price is $123.60. In the business scenario, the profitability depends on the fixed and variable costs compared to the selling price, which can be further analyzed through cost curves such as AC, MC, and AVC.
Step-by-step explanation:
The question involves calculating the markdown after a computer store offers a 20 percent discount on a system originally priced at $618. To find the markdown, we need to calculate 20% of the selling price. The markdown is computed as follows:
Original Selling Price: $618
Discount Rate: 20%
Markdown Amount = $618 × 20% = $618 × 0.20 = $123.60
The markdown for the computer system is $123.60.
Regarding the scenario where a computer company produces affordable, easy-to-use home computer systems with fixed and marginal costs, the original question appears to ask about profitability at different selling prices and the illustration of cost curves, which are fundamental concepts in economics and business studies.
If the company sells each computer for $500, we need to consider the fixed and variable costs to identify the profit or loss. Adding the fixed cost to the marginal costs of producing multiple units will give us the total cost, which, when compared to the sales revenue at the $500 selling price, will indicate a profit or loss. At a $300 selling price, it's almost certain that the firm would incur a loss since the selling price is lower than the marginal cost of producing even a single computer.
To find the zero-profit point or the shutdown point, we need to calculate the average cost (AC) and compare it with the selling price. A detailed graph would include the average cost (AC), marginal cost (MC), and average variable cost (AVC) curves to visualize the profitability and to find those break-even or shutdown points.