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1 answer:
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Answer:
a) $4110
Step-by-step explanation:
Let x represent number of rain coats and C(x) represent total cost to produce new line of rain coats.
We have been given that the fixed costs of $570 to set up for production, and variable costs of $30 per jacket.
The cost of x jackets would be .
The total cost of x jackets would be variable cost of x jackets plus fixed costs that is $570.
Therefore, the total cost of producing x rain coats would be .
To find the total cost of producing 118 rain coats, we will substitute in the above equation as:
Therefore, the total cost of producing 118 rain coats is $4110 and option 'a' is the correct choice.