Question

The cost components of an air conditioner include $35 for the compressor, $11.50 for the sheet-molded compound frame, and $80 per unit for assembly. The factory machines and tools cost is $55,000. The company expects to produce 1,500 air conditioners in the coming year. What cost function best represents these costs? A y = 1500 + 126.5X b y = 1,500 + 55,000X c y = 55,000 + 126.50X d y = 55,000 + 1,500X

Answer 1

Answer:

c y = 55,000 + 126.50X

Explanation:

Fixed Costs = $55,000

Variable Costs = $35 + $11.50 + $80 = $126.50

Therefore, The cost function best represents these costs is y = 55,000 + 126.50X