TVC = 30 + 125 Q – Q2 In this equation, TVC is expressed in thousands of liras and Q is expressed in thousands of units of Parlak Ultima. a. Estimate TOTAL VARIABLE COST and AVERAGE VARIABLE COST for the coming year at a projected volume of 10,000 units. b. During this period, one of the company’s suppliers decided to run a promotion and gave substantial discounts for Parlak’s purchases. If actual average variable costs were $100 per unit at an actual volume of 15,000 units, calculate the separate influences on average variable cost of (1) economies of scale, and (2) the input cost decreases resulting from supplier discounts

Q&A Education