The image appears to be a worksheet titled "Economic Issues: Value Scrap," which seems to focus on economic concepts, particularly related to value and cost. Below is an explanation of the task and how to approach solving it:
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Worksheet Overview
The worksheet is divided into several sections:
1.
Instructions and Context:
- The task involves analyzing a scenario where a company produces a product (e.g., a toy) and incurs costs.
- The goal is to calculate the total cost of production and determine whether the company can make a profit.
2.
Key Questions:
-
Fixed Costs: These are costs that do not change with the level of production (e.g., rent, salaries).
-
Variable Costs: These are costs that vary with the level of production (e.g., raw materials, labor per unit).
-
Total Cost: Sum of fixed and variable costs.
-
Profitability Analysis: Determining if the company can make a profit based on the selling price and total costs.
3.
Example Scenario:
- A toy factory produces 100 toys.
- Fixed costs: $500.
- Variable costs per toy: $3.
- Selling price per toy: $10.
4.
Questions to Answer:
- Calculate the total variable cost.
- Calculate the total cost.
- Determine the revenue from selling all toys.
- Calculate the profit or loss.
- Analyze whether the company can make a profit.
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Step-by-Step Solution
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1. Identify Fixed Costs
Fixed costs are given as $500. These costs remain constant regardless of the number of toys produced.
####
2. Calculate Total Variable Costs
Variable costs depend on the number of toys produced. Here:
- Variable cost per toy = $3
- Number of toys produced = 100
\[
\text{Total Variable Cost} = \text{Variable Cost per Toy} \times \text{Number of Toys}
\]
\[
\text{Total Variable Cost} = 3 \times 100 = 300
\]
####
3. Calculate Total Cost
Total cost is the sum of fixed costs and total variable costs.
\[
\text{Total Cost} = \text{Fixed Costs} + \text{Total Variable Costs}
\]
\[
\text{Total Cost} = 500 + 300 = 800
\]
####
4. Calculate Revenue
Revenue is the total income generated from selling all the toys. Here:
- Selling price per toy = $10
- Number of toys sold = 100
\[
\text{Revenue} = \text{Selling Price per Toy} \times \text{Number of Toys Sold}
\]
\[
\text{Revenue} = 10 \times 100 = 1000
\]
####
5. Calculate Profit or Loss
Profit is calculated as the difference between revenue and total cost.
\[
\text{Profit} = \text{Revenue} - \text{Total Cost}
\]
\[
\text{Profit} = 1000 - 800 = 200
\]
If the result is positive, the company makes a profit. If negative, the company incurs a loss.
####
6. Analyze Profitability
Since the profit is $200, the company can make a profit by producing and selling 100 toys at the given prices and costs.
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Final Answers
1.
Total Variable Cost: $300
2.
Total Cost: $800
3.
Revenue: $1000
4.
Profit: $200
5.
Can the Company Make a Profit?: Yes
---
Boxed Final Answer
\[
\boxed{200}
\]
Parent Tip: Review the logic above to help your child master the concept of amoeba worksheet.
