Question

Machine A has a fixed daily cost of $20 and a variable cost of $1.00 per item produced. Machine B has a fixed daily cost of $10 and a variable cost of $1.50 per item produced. (a) What is the number of items x for which the total daily cost C (in dollars) of each machine will be the same

Answer 1

20 units

Step-by-step explanation:

Data provided in the question:

Machine A has a fixed daily cost = $20

Variable cost of machine A = $1.00

Machine B has a fixed daily cost = $10

Variable cost of machine B = $1.50

Now,

According to the question

Total cost for Machine A = Total cost for the machine B

or

$20 + $1.00x = $10 + $1.50x

or

( $1.50 - $1.00)x = $20 - $10

or

$0.50x = $10

or

x = 20 units