A. Total fixed costs are $10,000 per week, and the variable cost per unit is $8.00. Write

Question:

A. Total fixed costs are $10,000 per week, and the variable cost per unit is $8.00. Write the algebraic expression for the cost function and graph it. What are the assumptions of the cost function?

B. Total fixed costs are $25,000 per week up to 2,000 units a week and then jump up to $35,000 per week. The variable cost per unit is $8.00. Write the algebraic expression for the cost function and graph it.

C. The average cost to produce 10,000 units is $45.00 and the average cost to produce 12,000 units is $44.00. Estimate the average cost to produce 15,000 units.

D. The total cost function for Hot Dog Days, a hot dog cart business in Central Park, is TC = $5,000 +45% X total revenues. Estimate the total cost for a month when total revenues are $10,000.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Cost Management Measuring Monitoring And Motivating Performance

ISBN: 392

2nd Edition

Authors: Leslie G. Eldenburg, Susan K. Wolcott

Question Posted: