Question

TMI, a manufacturer of blank DVDs, has a monthly fixed cost of $14,200 and a variable cost of 70 cents/disc.

Answer 1

Answer: Therefore, the total cost incurred per month is;

C(x) = 14,200 + 0.7x dollars

Step-by-step explanation:

Given;

Fixed cost Cf = $14,200 per month

variable cost = 70cent/disc

Number of disc manufactured per month = x disc/month.

The total variable cost in a month can be given as;

Cv = 70cent/disc × x disc/month

Cv = 70x cent/month × 1/100cent/dollar

Cv = 0.7x dollar/month

Total cost C = Fixed cost + variable cost

C = Cf + Cv

Substituting the values, we have;

C(x) = 14,200 + 0.7x dollars/month