ASSIGNMENT NUMBER TWO 1. i) Trusts Fisheries is an upcoming fish farmer specializing in the production of red bream. The Marketing department has determined the following cost structure per kilogr

ASSIGNMENT NUMBER TWO

1.

i)

Trusts Fisheries is an upcoming fish farmer specializing in the production of red  

bream. The Marketing department has determined the following cost structure  

per kilogram of fish produced.  

 Variables cost per Kg K15.00

 The fixed costs for period is K20.00

 Selling price per Kg is K25.00  

Questions:  

a)

Deriver the total cost function and revenue function  

(4 marks)

b)

Determine the break-even point in kgs.

(4 marks)  

c)

The number of kgs that would give a profit of K4.00  

(4 marks)

2. You are given the following total cost function

Find:

a) Average variable costs (AVC) (4 marks)

b) Average Fixed Costs (AFC) (4 marks)