Question

Heavenly Computers is a company started by two engineering students to assemble and market personal computers to faculty and students. The company operates out of the garage of one of the students’ homes. From the following costs of a recent month, compute the total cost function and total cost for the month:

Telephone ......................... $ 60, fixed
Utilities ...... 250, fixed: 30% attributable to the garage, 70% to the house
Advertising .......................... 85, fixed
Insurance ........................... 110, fixed
Materials ................. 5,500, variable, for five computers
Labor . 2,150: $1,400 fixed plus $750 for hourly help for assembling five computers




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  • CreatedNovember 19, 2014
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