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25 September, 12:41

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

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  1. 25 September, 14:40
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    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
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