Problema Solution

There are fixed costs of $540 to set up for production, and variable costs of $34 per jacket. Write an equation that can be used to determine the total cost, C(x), encountered by Marty’s Company in producing x jackets, and use the equation to find the total cost of producing 113 jackets.

Answer provided by our tutors

C(x) = 540 + 34x

C(113) = 540 + 113*34

   = $4382