Homework SourseThe accompanying table shows a boat manufacturers total cost
The accompanying table shows a boat manufacturer’s total cost of producing boats.
Quantity of Boats
Total Cost
0
$ 450,000
1
$ 490,000
2
$ 510,000
3
$ 520,000
4
$ 540,000
5
$ 570,000
6
$ 610,000
7
$ 670,000
8
$ 750,000
9
$ 870,000
What is this manufacturer’s fixed cost?
| Quantity of Boats | Total Cost |
| 0 | $ 450,000 |
| 1 | $ 490,000 |
| 2 | $ 510,000 |
| 3 | $ 520,000 |
| 4 | $ 540,000 |
| 5 | $ 570,000 |
| 6 | $ 610,000 |
| 7 | $ 670,000 |
| 8 | $ 750,000 |
| 9 | $ 870,000 |
Solution
Fixed cost is $450 as when zero quantity of boats are manufactured it cost him $450.
