The costs of doing business for a company can be found by adding fixed costs., such as rent, insurance, and wage, and variable costs, which are the costs to purchase product you are selling. The portion of the company's fixed costs allotted to this product is $600, and the supplier's cost for a set of tiles is $11 each. let x represent the number of tiles sets.
600 + 11x = Cost
To find the total cost of doing business for a company, we need to calculate both the fixed costs and variable costs.
Fixed costs, such as rent, insurance, and wages, are costs that do not change regardless of the quantity of product produced. In this case, the portion of fixed costs allotted to the product is $600.
Variable costs, on the other hand, are costs that vary depending on the quantity of product produced or purchased. In this case, the variable cost is the cost to purchase the product, which is $11 per set of tiles.
Let's represent the number of tile sets as x. We can then calculate the variable cost by multiplying the cost per set of tiles ($11) by the number of tile sets (x). This gives us the equation:
Variable cost = $11 * x
To find the total cost of doing business, we need to add the fixed costs and variable costs together. Therefore, the total cost (C) can be calculated as follows:
C = Fixed costs + Variable costs
C = $600 + ($11 * x)
Now, you can use this equation to calculate the total cost of doing business for a specific number of tile sets (x).