A company markets exercise DVDs that sell for 1495 including

A company markets exercise DVDs that sell for $14.95, including shipping and handling. The monthly fixed costs (advertising, rent, etc.) are $13,770 and the variable costs (materials, shipping, etc.) are $6.45 per DVD. Find the equation of the cost of producing DVDs per month.

C = $13,770m + $6.45

C = $14.95 + $6.45d

C = $14.95m + $6.45

C = $13,770 + $6.45d

Solution

as given we need to find the equation of cost of producing DVDs per month.

we know that cost of producing any items per month is given by the equation

C(x) = monthy fixed costs + ( variable costs per item * number of items per month )

let assume that d is the number of DVDs company producing per month

and as given ,

monthly fixed costs = $13,700

variable costs = $6.45 per DVD

so we can say that equation of the cost of producing DVD per month

C(d) = $13,700 + ($6.45*d)