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Azonic, Ltd., a clothing firm, has fixed costs of $10,000 per year. These costs, such as rent, maintenance, and so on, must be paid no
Azonic, Ltd., a clothing firm, has fixed costs of $10,000 per year. These costs, such as
rent, maintenance, and so on, must be paid no matter how much the company produces.
To produce x units of a certain kind of suit, it costs $20 per suit (unit) in addition to the
fixed costs. That is, the variable costs for producing x of these suits are dollars. These
costs are due to the amount produced and stem from items such as material, wages, fuel,
and so on. The total cost () of producing x suits in a year is given by a function :
( ) = ( ) + ( ) = 20 + 10,000. (5)
a) Graph the variable-cost, the fixed-cost, and the total-cost functions.
b) What is the total cost of producing 100 suits? 400 suits?
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