Account Analysis
Custom Computers is a company started by two engineering students to assemble and market personal computers to faculty and students. The company operates out of the garage of one of the students’ homes.
From the following costs of a recent month, compute the total cost function and total cost for the month:
|
Telephone |
$50, fixed |
|
Utilities |
200: fixed, 40% attributable to the garage, 60% to the house |
|
Advertising |
85, fixed |
|
Insurance |
65, fixed |
|
Materials |
18,000, variable, for 12 computers |
|
Labor |
2,060: $1,100 fixed plus $960 for horly help for assembling five computers |