124k views
1 vote
There is a fixed cost of $50,000 to start a production process. Once the process has begun, the variable cost per unit is $25. The revenue per unit is projected to be $45. a. Write an expression for total cost. b.

User Algrebe
by
6.2k points

1 Answer

4 votes

Answer:

$50,000 + $25x

Step-by-step explanation:

Given that,

Fixed cost to start a production process = $50,000

Variable cost per unit = $25

Revenue per unit is projected to be $45

Therefore,

Let the number of units produced be x,

The total cost function is as follows:

Total cost = Fixed cost + Variable cost

= $50,000 + (Variable cost per unit × Number of units)

= $50,000 + $25x

User Ahtisham Ashraf
by
7.2k points