Question

The Krazy Kite Company is planning to produce kites. The company has rented space for it's manufacturing operation at $6,000 per month. Each kite requires $37 worth of materials and $128 worth of labor.

Find the total costs if Krazy Kite Company makes 170 kites in a month

Answer 1

What are your fixed cost and what are your variable cost?

Answer 2

I'm not sure

Answer 3

fixed cost is something you have to pay every month no matter how many kites you produce. So what is the fixed cost for the kite company?

Answer 4

Isn't it 6,000?

Answer 5

Yes so we know we are going to have a cost of $6000 no matter what. Now we need to determine our variable cost. Variable cost are the cost associated with making 1 unit of product. So how much does it cost to make 1 kite?

Answer 6

$165

Answer 7

Correct so what would a formula look like based on a fixed cost of $6000 and a variable cost of $ 165 if x represents the number of kites made?

Answer 8

165+x=6000?

Answer 9

The formula would look like this y = ax + b. With y representing your total cost. So what figures would you substitute for a and b?

Answer 10

165 for a? and 6000 for b?

Answer 11

y=165x+6000?

Answer 12

You got it. Now what would the value for x be?

Answer 13

i forget how to figure that out

Answer 14

x represents the variable. In this case it represents the number of kites made.

Answer 15

Oh yeah

Answer 16

Plug it in and solve for y and you have your total cost.

Answer 17

i got 34,050?

Answer 18

Good job!!!

Answer 19

thanks