The cost to produce one compact disc is $1.75 plus a one-time fixed cost of $2800. The revenue received from selling one compact disc is $12.
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Part 1
(a) Write a formula that gives the cost C of producing x compact discs. Be sure to include the fixed cost.
The formula that gives the cost C of producing x compact discs is:
C = $1.75x + $2800
The formula for the cost C of producing x compact discs is:
C = 1.75x + 2800
To calculate the cost (C) of producing x compact discs, we need to take into account the variable cost per disc and the fixed cost.
The variable cost per disc is given as $1.75. This means that for each disc produced, it costs $1.75.
The fixed cost is given as $2800. This is a one-time cost that remains constant regardless of the number of discs produced.
To calculate the cost of producing x compact discs, we use the following formula:
C = (variable cost per disc * x) + fixed cost
Substituting the given values:
C = ($1.75 * x) + $2800
So the formula for the cost C of producing x compact discs is:
C = $1.75x + $2800