Question

Jeff prepares meals in the home of his customers. His fixed cost for transportation and supplies is $14.50. The labor and groceries needed for each family meal is $8.80, so the expense function is E=5.7q +8.8

True or false?

Answer 1

The formula for expense is given as:

E = V q + F

where, E = expense, V = variable cost, F = fixed cost

Therefore the equation should be:

E = 8.8 q + 14.50

So the answer is “False”