Question

A company that manufactures widgets has fixed costs of $5,956.00 each month and a cost of $2.08 for each widget it produces. Which of the following equations could be used to determine the total production costs for the company if it produced x widgets last month?

(Let x represent the number of widgets the factory produced last month and y represent the total production costs for the factory.)

A. y = $5,956.00 + $2.08x
B. y = $2.08 + $5,956.00x
C. y = $5,956.00x - $2.08x
D. y = $595.60 + $2.08x

Answer 1

Okay. “x” equals the number of widgets produced, which is $2.08 each. The “x” variable would be with the $2.08. We can eliminated B, because the “x” is not beside it. $5,956 is the fixed cost each month, so it doesn’t change each month. D is eliminated, because it does not have that cost. We can also eliminate C, because the “x” variable would not be on $5,956. The best answer for this is A, because the formula $5,956 + $2.08x would best get the total costs for a month’s worth. The answer is A.