Question

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

Answer 1

$ 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