Question

Cost analysis. A small company manufactures picnic tables.
The weekly fixed cost is $1,200 and the variable cost is $45
per table. Find the total weekly cost of producing x picnic
tables. How many picnic tables can be produced for a total
weekly cost of $4,800

Answer 1

weekly fixed cost = $1200
variable cost = $45 per table
Total weekly cost = weekly fixed cost + no.of tables ($45)
Total weekly cost of producing x picnic tables = $1200 + $45x
No. of picnics tables produced for total weekly cost of $4800
=> $1200 + $45x = $4800
$45x = $4800 -$1200
$45x = $3600
x = $3600/$45
x = 80 picnic tables can be produced for total weekly cost of $4800.