Accounting for Decision Making and Control 6th Edition by Jerold Zimmerman

Exercise 49

Taylor Chemicals produces a particular chemical at a fixed cost of $1,000 per day. The following table displays how marginal cost varies with output (in cases):
Required:
a. Given the preceding data, construct a table that reports total cost and average cost at various output levels from 1 to 10 cases.
b. At what quantity is average cost minimized
c. Does marginal cost always intersect average cost at minimum average cost Why