Question

Malcom’s Tee Shirt & Jacket Company is to produce a new line of rain coats. There are fixed costs of $570 to set up for production, and variable costs of $30 per jacket. Write an equation that can be used to determine the total cost, C(x), encountered by Malcom’s Company in producing x rain coats, and use the equation to find the total cost of producing 118 rain coats.

a) $4110b) $4102c) $4090d) $4122e) none

Answer 1

`C(x)=30x+570`

a) $4110

Explanation:

Let x represent number of rain coats and C(x) represent total cost to produce new line of rain coats.

We have been given that the fixed costs of $570 to set up for production, and variable costs of $30 per jacket.

The cost of x jackets would be
`30x`.

The total cost of x jackets would be variable cost of x jackets plus fixed costs that is $570.

Therefore, the total cost of producing x rain coats would be
`C(x)=30x+570`.

To find the total cost of producing 118 rain coats, we will substitute
`x=118` in the above equation as:

`C(118)=30(118)+570`

`C(118)=3540+570`

`C(118)=4110`

Therefore, the total cost of producing 118 rain coats is $4110 and option 'a' is the correct choice.