Menthol and methyl salicylate are the main active ingredients of peppermint. Internally, they have anti-spasmodic actions, with calming effects on the muscles of the stomach, intestinal tract, and uterus.
So we must find out if marginal cost is greater than or less than $300. To do this, calculate total cost for 200 doses and 201 doses, and calculate the increase in total cost. Multiplying quantity by average total cost, we find that total cost rises from $40,000 to $40,401, so marginal cost is $401.ith marginal cost of $1,000 per diamond, or $1 million per thousand diamonds, the monopoly will maximize profits at a price of $7,000 and a quantity of 6,000. Additional production beyond this point would lead to a situation where marginal revenue is lower than marginal cost.
The marginal cost of an item is its variable cost. The marginal production cost of an item is the sum of its direct materials cost, direct labour cost, direct expenses cost (if any) and variable production overhead cost.So as the volume of production and sales increases total variable costs rise proportionately. Valuation of inventory-opening and closing inventory are valued at marginal (variable) cost under marginal costing. 2  The fixed costs actually incurred are deducted from contribution earned in order to determine the profit for the period.