Question
3.39 Custom Computers is a company started by two engineering students to assemble and market personal computers to faculty and students. The company operates out
3.39 Custom Computers is a company started by two engineering students to assemble and market personal computers to faculty and students. The company operates out of the garage of one of the students%u2019 homes. From the following costs of a recent month, compute the total cost function and total cost for the month:
Telephone...........$ 50, fixed.
Utilities...............$260: fixed, 25% attributable to the garage, 75% to the house.
Advertising..........$75, fixed.
Insurance............$80, fixed.
Materials.............$7,500, variable, for five computers.
Labor..................$1,800: $1,300 fixed plus $500 for hourly help for assembling five computers.
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