Question

If the cost of producing a product that sells for $50 is 12000 plus $20.00 per piece, then what is the cost equation for producing x items?

Answer 1

Cost equation for producing x items is C(x) = 12000 + 20 x

Explanation:

The cost of producing a product that sells for $50 is 12000 plus $20.00 per piece.

Fixed cost = 12000 $

Cost per piece of production = 20 $

Number of products produced = x.

Total cost be C(x), we have

C(x) = 12000 + 20 x

Cost equation for producing x items is C(x) = 12000 + 20 x

Answer 2

We are given that

Fixed cost=12000.00

Cost per piece=$20.00

Selling Price=$50.00

The cost equation for producing x items can be written as

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where x is the number of items to be produced.