Question

A company manufactures batteries for cell phones. The overhead expenses of keeping the factory operational for a month—even if no batteries are made—total $500,000. Batteries are manufactured in lots (1000 batteries per lot) costing $7000 to make. In this scenario, $500,000 is the fixed cost associated with producing cell phone batteries, and $8000 is themarginal(or variable) cost of producing each lot of batteries. The total monthly costy of producingx lots of cell phone batteries is given by the equation y= 500,000 + 7000x (Fill in the blanks below and give your answers as whole numbers.) ( a) What will it cost to produce 30 lots of batteries ( 30000 batteries) ? It will cost $ (b) If each lot cost $15000 instead of $7000 to produce, what is the equation that describes total monthly cost forxlots produced? y=______+______x

Answer 1

a) The estimated cost to produce 30 lots of batteries is

= 500,000 + (7000*30)

= 710,000

b) If each lot cost $15000 instead of $7000 to produce, the equation that describes total monthly cost for x lots produced is

y = 500,000 + (15000*x)