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28 May, 21:36

Tasty Beverage Co. produces soft drinks, specializing in fruit drinks. Tasty produces 4,100 cans of product per batch. Setup cost for each batch is $80 and each drink costs $0.10 to produce. a. What is the total cost per batch? b. How much would it cost to fill an order for 94,300 cans?

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  1. 28 May, 22:34
    0
    Total cost per batch = $490

    Total Cost of the order = $11,270

    Explanation:

    a)

    Total cost per batch

    = Set cost per batch + cost per unit * units in a batch

    = $80 + ($0.10 * 4,100) =

    = $490

    b)

    Cost of an order for 94,300 cans

    94,300 cans = 94,300/4,100 batches

    = 23 batches

    Total Cost of the order = 23 * $490

    = $11,270
  2. 28 May, 23:16
    0
    a.

    Total cost per batch is $490

    b.

    The cost to fill in an order of 94300 cans will be $11270

    Explanation:

    The cost function for total cost per batch consists of a fixed cost of $80 for set up and a variable cost of $0.1 per unit. Thus, the cost equation for Total cost per batch is,

    Let x be the number of units.

    Total cost per batch = 0.1 * x + 80

    a.

    One batch can produce a maximum of 4100 cans.

    Total cost per batch = 0.1 * 4100 + 80 = $490 per batch

    b.

    To fill in an order of 94300 cans, we require the following number of batches.

    Number of batches required = 94300 / 4100 = 23 batches

    Total cost for 23 batches = 23 * 490 = $11270
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