Question

A bakery has fixed costs for retail space, electricity, and appliances of $15,000. The variable cost of baking a cookie is 0.25 and the variable cost of baking a cake is $3.53. What is the total cost of 400 dozen cookies and 200 cakes

Answer 1

Answer:

actually its 16,906 (b)

Step-by-step explanation:

Answer 2

Answer:

Step-by-step explanation:

That $15,000 sounds like an annual amount, not a monthly or weekly amount.  In the absence of clarification of this, I will include that $15,000 in the following calculations:

Let the # of cookies baked be z and the number of cakes be k.

Then:

Total cost = $15,000 + ($0.25/cookie)z + ($3.53/cake)k

In this specific case, where the number of cookies is z and the number of cakes is k, the formula  

Total cost = $15,000 + ($0.25/cookie)z + ($3.53/cake)k

becomes ...

Total cost (z, k)  = $15,000 + ($0.25/cookie)(400) + ($3.53/cake)(200),

and this works out to:

TC (z, k) = $15,000 + $100 + $706 = $15,000 + $806 = $15,806.

No cakes or cookies could be good enough to warrant production costs that high!

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