Question

A company produces a product which it sells for $55 per unit. Each unit cost the firm $23 in variable expenses and fixed cost on an annual basis are $400000. If x equals the number of units produce and sold during the year.
*formulate the total cost function. ​

Answer 1

Answer:

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Answer 2

Given:

A company produces a product which it sells for $55 per unit. Each unit cost the firm $23 in variable expenses and fixed cost on an annual basis are $400000.

To find:

If x equals the number of units produce and sold during the year.

*formulate the total cost function. ​

Solution:

From given, we have,

Let "x" be the unit.

Each unit cost the firm $23 in variable expenses

23x

Each unit cost the firm $400000 fixed cost on an annual basis

400000

The total annual costs are the sum of these two. So we write the annual cost function in dollars as follows:

.C(x) = 23x + 400,000

The formula for the total cost function is C(x) = 23x + 400,000