A manufacturing firm, specialising in making widgets, has overhead expenses (wages, utilities etc) of

$150,000 per year.

It also costs $17 to make each widget in parts and labour. This is a variable cost.

a. If n widgets are produced each year, write a rule (equation) for the total costs "C",

(overheads plus variable costs) for the company to make 'n' widgets in a year.

Question

Mathematics

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15 November, 23:06

A manufacturing firm, specialising in making widgets, has overhead expenses (wages, utilities etc) of

$150,000 per year.

It also costs $17 to make each widget in parts and labour. This is a variable cost.

a. If n widgets are produced each year, write a rule (equation) for the total costs "C",

(overheads plus variable costs) for the company to make 'n' widgets in a year.

+2

Answers (1)

Know the Answer?

Lizbeth Eaton · Answer 1

C = 150000 + 17n

where,

C = Total Cost per year = Fixed Cost + Variable Cost

n = Number of Widgets produced each year

17n = Variable Cost

150000 = Fixed Cost