Post by: jeatrice on Jun 7, 2019
Question 1
Given the following chart, calculate the cost function. Interpret the function to calculate variable costs and fixed costs:
Question 2
An electrician charges a flat fee of $90 for a home service call. In addition he charges $25 for every 20 minutes as labour cost. Draw a graph to show the total charge against the time in hours. Calculate the slope of the line.Post by: upturnedfurball on Jun 7, 2019
Answer 1
y-intercept = 840Slope of the line =
= 4∴ Line is presented by the following relationship:
y = 4x + 840
In terms of cost this line is written as:
TC = VC + FC
∴ FC = $840
and VC = $4 per attendant
Answer 2
Fixed cost = $90 (FC)Variable cost = $25 for every 20 minutes = $75 per hour (TVC)
Total cost = TC = TVC + FC
TC = $75t + $90
∴ Slope of the line = 75
Following is the graph:
