7.1 A firms cost function may be expressed as: y = a + bx where: y is the total cost a is the total fixed cost b is the variable cost per unit x is the number of units of output The total cost for output of 8 400 units in March 2015 is N$106 250 and the total fixed cost is N$41 990. REQUIRED:

Using the above information and formula, calculate: 7.1.1 the variable cost per unit 7.1.2 the total cost for output of 8 660 units in April 2015 7.1.3 the cost per unit for output of 8 500 units in May 2015