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27 January, 17:36

A new company manufactures tennis rackets. The fixed expenses are $78,490 and the variable expenses are $14 per racket produced. What is the expense of producing 3,500 rackets?

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  1. 27 January, 17:39
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    The solution for the problem follows:

    Expense = variable expenses * quantity of produced + fixed expenses

    = 14q + 78,490

    = 14 (3500) + 78, 490

    = 49000 + 78,490

    = $127, 490 is the total expense for 3,500 tennis rackets

    Get the per piece expense by dividing 127,490 to 3500

    Expense per piece = 127,490 / 3500

    = $36.43
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