The Chowning Company manufactures ear buds. The variable cost of each set of ear buds is $0.35. The company incurs monthly fixed costs of $10,000. If Chowning makes 1,200 sets of ear buds in February, what is the total cost

Respuesta :

If Chowning makes 1,200 sets of ear buds in February, what is the total cost is $10,420.

Total cost

Using this formula

Total cost = Variable cost + Fixed cost

Where:

Variable cost=(1200×$0.35)=$420

Fixed cost=$10,000

Let plug in the formula

Total cost = (1200×$0.35) +$10,000

Total cost=$420+$10,000

Total cost=$10,420

Inconclusion  If Chowning makes 1,200 sets of ear buds in February, what is the total cost is $10,420.

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