Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Let's try to determine the cost function for another company like ABC who makes sausages. Assume costs are as follows: 1. Monthly depreciation on buildings

image text in transcribed

Let's try to determine the cost function for another company like ABC who makes sausages. Assume costs are as follows: 1. Monthly depreciation on buildings and equipment is $12,503 2. Product costs are $1.22 per pound produced 3. Wages are $2.9 per pound produced 4. Supervisory Salaries total $12,945 per month 5. Utilities cost $3,193 per month plus $.20 per pound produced. What is the fixed cost portion of their cost formula? (in other words, what is the "f" in y = f + vx) Round your answer to two decimal places. Don't enter dollar signs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions