Feather friends, inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. variable expenses are $40.00 per unit, and fixed expenses total $200,000 per year. its operating results for last year were as follows:

Question

Business

Esther Lutz

24 December, 06:44

Feather friends, inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. variable expenses are $40.00 per unit, and fixed expenses total $200,000 per year. its operating results for last year were as follows:

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Lloyd · Answer 1

To answer this item, we are to let x be the number of units. The total operating cost of the process is equal to the sum of the variable expenses and the fixed expenses.

The total variable cost is equal to 40x. Hence, the total operating cost for the year would be,

TC = 40x + 200,000