Question

Avery is in the business of manufacturing phones. she must pay a daily fixed cost to rent the building and equipment. and also pays a cost $100 for each phone manufactured, and the total cost of producing 3 phones in a day would be $600. write an equation for C, in terms of p, representing total cost, in dollars, of producing p phones in a given day.

Answer 1

Let C be the total cost of producing phones per day

p be the number of phoned manufactured per day

We can divide the daily total cost of manufacturing phones into 3 parts:

1) The Daily Fixed cost for rentals, DFC

2) $100 cost for manufacturing each phone

3) $600 total cost of manufacturing 3 phones ( or $200 per phone)

The equation for C will be:

Total Cost = Daily Fixed Cost + $100/phone (number of phones manufactured per day)+ ($600/3phones)(number of phones manufactured per day)

C = DFC + 100p +200p = DFC + p ( 100 + 200) = DFC + 300p