Question

Last help for tonight

Answer 1

@jim_thompson5910 can you please help me with these questions?

Answer 2

The fixed cost is $3000. This may be the rent, utilities, insurance, etc

This cost does not change based on how many units are produced.

Answer 3

$12 is the variable cost. The total variable cost goes up when you produce more units

Answer 4

For part a), we are producing 500 units, so what is the total variable cost for these 500 units?

Answer 5

sorry not part a), but #7

Answer 6

So like to solve #7 would I do 12x+3000=500?

Answer 7

not quite

Answer 8

12*500 + 3000 actually

Answer 9

12*500 represents the variable cost to produce the 500 units

the +3000 tacks on the fixed cost to run the business