Question

A. Total fixed costs are $10,000 per week, and the variable cost per unit is $8.00. Write the algebraic expression for the cost function and graph it. What are the assumptions of the cost function?
B. Total fixed costs are $25,000 per week up to 2,000 units a week and then jump up to $35,000 per week. The variable cost per unit is $8.00. Write the algebraic expression for the cost function and graph it.
C. The average cost to produce 10,000 units is $45.00 and the average cost to produce 12,000 units is $44.00. Estimate the average cost to produce 15,000 units.
D. The total cost function for Hot Dog Days, a hot dog cart business in Central Park, is TC = $5,000 +45% X total revenues. Estimate the total cost for a month when total revenues are $10,000.



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  • CreatedJanuary 26, 2015
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