Question: How do i find the fixed cost to write thr formula needed in question a 1. The Midwest Block and Brick company in Jefferson City,

How do i find the fixed cost to write thr formula needed in question a

How do i find the fixed cost to write thr formula needed

1. The Midwest Block and Brick company in Jefferson City, Missouri makes concrete blocks for construction purposes. Suppose they are considering entering a new market in south- eastern Kansas. A concrete plant requires an upfront investment of $735,000 and will have a useful life of just one year. Labor costs are limited; the plant requires 4 employees, each of whom are paid $9 per hour and are guaranteed 40 hours a week, every week of the year. Apart from the initial investment and labor, there are three additional costs: raw materi- als, power, and maintenance. Concrete blocks are produced by combining cement, water, sand and gravel. Suppose that the raw materials and power used to produce one block cost $0.25. Suppose further that the plant's annual maintenance costs depend on how many blocks are produced in a given year. Specically, if the plant produces Q blocks, then the annual maintenance cost is given by 00000015622. This means, for example, that if a plant is scheduled to produce one million blocks in a year, then the annual maintenance cost will be 0.0000015Q2 = 0.0000015 =1: (1, 000, 000)2 = 1,500, 000 (a) (2 points) Write an algebraic formula for the annual total cost curve

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