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Unit cost of watches: $19.50Number of watches produced: 1,500Fixed costs:$6,500Total costs?

1 Answer

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$ 35750

Step-by-step explanation

The formula to calculate total cost is the following:


total\text{ cost =total fixed cost+total variable cost}

so

Step 1

in this case, the variable cost is the cost from the watches ( because it depends on the number of watches produced)

hence

a)let


\begin{gathered} variable\text{ cost=unit cost of watches*number of watches} \\ variable\text{ cost= 19.50}\frac{\text{ \$}}{unit}1500\text{ units} \\ variable\text{ cost= \$ 29250} \end{gathered}

and


fixed\text{ cost=\$ 6500}

b) finally, replace in the formula


\begin{gathered} total\text{cost=totalf}\imaginaryI\text{xedcost+totalvar}\imaginaryI\text{ablecost} \\ total\text{ costs=29250+6500} \\ total\text{ costs=35750} \end{gathered}

therefore, the answer is

$ 35750

I hope this helps you

User Alexey Usachov
by
8.3k points
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