Question

A company that manufactures widgets has fixed costs of $5,956.00 each month and a cost of $2.08 for each widget it produces.Which of the following equations could be used to determine the total production costs for the company if it produced x widgets last month?

(Let x represent the number of widgets the factory produced last month and y represent the total production costs for the factory.)

 A.

y = $5,956.00 + $2.08x

 B.

y = $2.08 + $5,956.00x

 C.

y = $5,956.00x - $2.08x

 D.

y = $595.60 + $2.08x

Answer 1

The fixed cost of $5956.00 is the constant while $2.08x is the variable cost.

So y=5956.00+2.08x is the required equation, answer A.