18 A company sells itsproducts at Rs. 10 per unit. Fixed cost for the
company is Rs. 35000 and the variable cost is estimated to be 30% of the
total revenue, then the total cost function is *
O 35000 + 10x
0 35000 + 3x
35000 + 30x
0
35000 + x
Answers
Given :- A company sells its products at Rs. 10 per unit. Fixed cost for the company is Rs. 35000 and the variable cost is estimated to be 30% of the total revenue, then the total cost function is :-
A) 35000 + 10x
B) 35000 + 3x
C) 35000 + 30x
D) 35000 + x .
Solution :-
from given data we have ,
- Price pe unit = p = Rs.10 .
- variable cost = 30% of the total revenue .
- Fixed cost = Rs.35000 .
- Let number of unit sold = x .
So,
→ Total revenue = price per unit * number of units = 10 * x = 10x
then,
→ variable cost = 30% of 10x = (30 * 10x/100) = 3x .
therefore,
→ Total cost function = Fixed cost + variable cost
→ Total cost function = (35000 + 3x) (Ans.) (Option B).
Hence, Total cost function is (35000 + 3x) .
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