Question

Question content area top part 1 use the following data of company: loading...(click the icon to view the data.) 's cost of goods sold using the average-cost method would be:

Answer 1

To calculate a company's cost structures such as cost of goods sold using the average-cost method, a table including output, total cost, marginal cost, average cost, variable cost, and average variable cost is needed, with calculations based on fixed and variable costs.

Step-by-step explanation:

Understanding Cost Structures in Business

To calculate a company's cost of goods sold using the average-cost method, you need to create a table that includes various cost metrics. The table should display the company's output, total cost, marginal cost, average cost, variable cost, and average variable cost. This kind of analysis helps in determining how costs change with different levels of production. To find these values, one should:

1. Determine the total fixed costs and variable costs of the firm.
2. Calculate the total cost by adding fixed and variable costs.
3. Find the average variable cost by dividing the total variable costs by the quantity of output.
4. Calculate the average total cost by dividing the total cost by the quantity.
5. The marginal cost can be found by taking the change in total cost and dividing it by the change in the quantity produced.

These calculations provide insight into the cost structure of a firm and are crucial for pricing and profitability analysis.