A company is planning to manufacture snowboards. The fixed costs are $ 100$100 per day and total costs are $55005500 per day at a daily output of 20 boards. A. Assuming that the total cost per day, C (x), is linearly related to the total output per day, x, write an equation for the cost function.

Question

Kennedi Logan

Mathematics

13 November, 09:22

A company is planning to manufacture snowboards. The fixed costs are $ 100$100 per day and total costs are $55005500 per day at a daily output of 20 boards. A. Assuming that the total cost per day, C (x), is linearly related to the total output per day, x, write an equation for the cost function.

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Akira Hooper · Answer 1

The equation for total cost function is

C (x) = 100+270x

Step-by-step explanation:

Variable cost per per board = total cost per day-fixed cost per day/daily output

total cost per day is $5,500

fixed cost per day is $100

20 boards are produced per day

variable cost per board = ($5,500-$100) / 20=$270 per day

Total cost C (x) = fixed cost per day + variable per board*number of daily output

Since daily output is represented also by x, total cost function is given thus:

C (x) = 100+270x