Question: Let's try to determine the cost function for another company like ABC who makes sausages. Assume costs are as follows: Monthly depreciation on buildings and

Let's try to determine the cost function for another company like ABC who makes sausages. Assume costs are as follows:

  1. Monthly depreciation on buildings and equipment is $11825
  2. Product costs are $1.82 per pound produced
  3. Wages are $2.89 per pound produced
  4. Supervisory Salaries total $11053 per month
  5. Utilities cost $3981 per month plus $.20 per pound produced.

What is the fixed cost portion of their cost formula? (in other words, what is the "f" in y = f + vx)

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