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

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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The total cost for the month is 1730 5 1250 7980 based on the following c... View full answer

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