Question

Elizabeth sells popcorn to the students at the annual school dance. She pays $30.00 to rent the popcorn maker and $0.75 in supplies for each bag of popcorn. If Elizabeth buys supplies for p bags of popcorn, which equation expresses her total cost, c, in dollars?

Answer 1

c = $30 + $0.75p

Explanation:

total cost = total fixed cost + total variable cost

total fixed cost = $30

Fixed costs are costs that do not vary with output.

total variable cost = variable cost per unit x total unit

p x 0.75

Variable costs are costs that vary with production