COST CURVES

Unit price of a Worker: 50 Fixed cost to keep on production

FC VC TC
Worker
Copy Amount Fixed Cost Variable Cost Total Cost
Amount
1 625 200 50 250
2 1325 200 100 300
3 2200 200 150 350
4 2600 200 200 400
5 2900 200 250 450
6 3100 200 300 500
7 3290 200 350 550
8 3500 200 400 600
9 3600 200 450 650
10 3700 200 500 700

0.4500

0.4000

0.3500

0.3000

0.2500 AFC
AVC
0.2000 ATC
Best
0.1500

0.1000

0.0500

0.0000
0 2 4 6 8 10 12
CURVES

cost to keep on production/service: 200

TC AFC AVC ATC

Average Fixed Cost (per Average Variable Cost Average Total Cost (per
Total Cost
unit) (per unit) unit)
250 0.3200 0.0800 0.4000
300 0.1509 0.0755 0.2264
350 0.0909 0.0682 0.1591
400 0.0769 0.0769 0.1538
450 0.0690 0.0862 0.1552
500 0.0645 0.0968 0.1613
550 0.0608 0.1064 0.1672
600 0.0571 0.1143 0.1714
650 0.0556 0.1250 0.1806
700 0.0541 0.1351 0.1892

ANALYSIS

Lowest cost of the Worker is obtained at the minimum point of

AFC the ATC curve.
AVC
ATC
Worker Amount: 4
Best
Copy Amount: 2,600

FC: 200.00 AFC: 0.0769

VC: 200.00 AVC: 0.0769
TC: 400.00 ATC: 0.1538

12
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4
 Follow the steps to enable your Cost Curve.
>> The productivity observed by using different amounts of resources may not always be linear. This template helps to evaluate the rea
such resources.
1) Type the name of the resource that you want to create the cost curve:
Worker
2) Type the name of the product/service:
Copy
>> Your Cost Curve is ready to use. You can fill the table in the "Cost Curve" sheet and analyze the costs. Following steps are for online u
1) Visit the site below:
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You will only need the username and password to create your Cost Curve.
2) Visit the site below:
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Login to page with your new account information.
3) Click "Add Web Application" to upload this file. Your Cost Curve will be created automatically.
You can simply use the Cost Curve from that link or place it on your website.
>> Your Cost Curve will look like:
http://www1.spreadsheetweb.com/SpreadSheetWeb/Output.aspx?ApplicationId=643dcda5-4863-4d77-95fe-ac9dea78a78b
>> In order to see more online applications created with PSW you can check the link below:
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mplate helps to evaluate the real cost of

. Following steps are for online use.

d77-95fe-ac9dea78a78b