Question

Semiautomatic process has a fixed cost of $40,000 per year and variable cost of $30 per unit. An automatic process has fixed cost of $88,000 per year and a variable cost of $22 per unit. If "X" represents the number of units per year, the correct equation to calculate the total cost of semiautomatic process (TCsemi) is:

Answer 1

Total cost= 40,000 + 30X

Step-by-step explanation:

Giving the following information:

The semiautomatic process has a fixed cost of $40,000 per year and a variable cost of $30 per unit.

We need to use the following formula:

Total cost= fixed costs + unitary variable cost*X

Total cost= 40,000 + 30X