Creating and Using a Cost Formula

Big Thumbs Company manufactures portable flash drives for computers. Big Thumbs incurs monthly depreciation costs of $$15,000$ on its plant equipment. Also, each drive requires materials and manufacturing overhead resources. On average, the company uses $10,000$ ounces of materials to manufacture $5,000$ flash drives per month. Each ounce of material costs $$3\mathrm{.}00.$ In addition, manufacturing overhead resources are driven by machine hours. On average, the company incurs $$22,500$ of variable manufacturing overhead resources to produce $5,000$ flash drives per month.

In your calculations, round variable rate per flash drive to the nearest cent.

Required:

Create a formula for the monthly cost of flash drives for Big Thumbs.

Total cost of flash drives Number of flash drives