Question

A company is planning to manufacture snowboards. The fixed costs are $ 100$100 per day and total costs are ​$55005500 per day at a daily output of 20 boards. A. Assuming that the total cost per​ day, C(x), is linearly related to the total output per​ day, x, write an equation for the cost function.

Answer 1

Answer:

The equation for total cost function is

C(x)=100+270x

Step-by-step explanation:

Variable cost per per board =total cost per day-fixed cost per day/daily output

total cost per day is $5,500

fixed cost per day is $100

20 boards are produced per day

variable cost per board=($5,500-$100)/20=$270 per day

Total cost C(x)=fixed cost per day+ variable per board*number of daily output

Since daily output is represented also by x ,total cost function is given thus:

C(x)=100+270x