The cost components of a heater include $35 for the compressor, $11 for the sheet molded compound frame, and $74 per unit for assembly. The factory machines and tools cost is $55,000. The company expects to produce 1,300 heaters in the coming year. What cost function best represents these costs

Total cost = 120x + 55,000

x = nuber of units

Explanation:

Giving the following information:

Variable costs::

Compressor = $35

sheet molded compound frame = $11

assembly = $74

Total = $120

The factory machines and tools cost is $55,000.

We need to structure the total cost formula.

Total cost = total variable cost + total fixed costs

Total cost = 120x + 55,000

x = nuber of units

In this case:

Total cost = 120*1,300 + 55,000 = $211,000