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13 October, 15:05

A factory that makes can openers has fixed costs for building, fixtures, machinery, etc. of $26,000. The variable cost for material and labor for making one can opener is $2.75.

What is the total cost of making 20,000 can openers?

a.

$28,750

c.

$136,000

b.

$81,000

d.

$4.05

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Answers (1)
  1. 13 October, 16:36
    0
    It is "b. $81,000".

    That is why:

    First of all, lets calculate the cost of 20,000 can openers:

    x = $2.75 * 20,000 = $55,000

    Second, lets add fixed cost of operating a factory once:

    Answer = $26,000 + $55,000 = $81,000.
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