Problema Solution
Company produced 45,000 tons of steel in March at a cost of $1,150,000. In April the company produced 35,000 tons at a cost of $950,000. Assuming a linear relationship, write the cost function.
Answer provided by our tutors
FC = fixed cost
V = variable cost
45,000V + FC = 1,150,000
35000V + FC = 950,000
V = $20
FC = $250,000
cost function :
TC = 250,000 + 20x