fixed cost - business expenses that are not dependent on the level of goods or services produced by the business
A bakery has a fixed cost of $119.75 per a day plus $2.25 for each pastry. The bakery would like toA bakery has a fixed cost of $119.75 per a day plus $2.25 for each pastry. The bakery would like to keep its daily costs at or below $500 per day. Which inequality shows the maximum number of pastries, p, that can be baked each day.
Set up the cost function C(p), where p is the number of pastries:
C(p) = Variable Cost + Fixed Cost
C(p) = 2.25p + 119.75
The problem asks for C(p) at or below $500 per day. The phrase [I]at or below[/I] means less than or equal to (<=).
[B]2.25p + 119.75 <= 500[/B]
a bicycle store costs $3600 per month to operate. The store pays an average of $60 per bike. the avea bicycle store costs $3600 per month to operate. The store pays an average of $60 per bike. the average selling price of each bicycle is $100. how many bicycles must the store sell each month to break even?
Cost function C(b) where b is the number of bikes:
C(b) = Variable Cost + Fixed Cost
C(b) = Cost per bike * b + operating cost
C(b) = 60b + 3600
Revenue function R(b) where b is the number of bikes:
R(b) = Sale price * b
R(b) = 100b
Break Even is when Cost equals Revenue, so we set C(b) = R(b):
60b + 3600 = 100b
To solve this equation for b, we [URL='https://www.mathcelebrity.com/1unk.php?num=60b%2B3600%3D100b&pl=Solve']type it in our math engine[/URL] and we get:
b = [B]90[/B]
A book publishing company has fixed costs of $180,000 and a variable cost of $25 per book. The booksA book publishing company has fixed costs of $180,000 and a variable cost of $25 per book. The books they make sell for $40 each.
[B][U]Set up Cost Function C(b) where b is the number of books:[/U][/B]
C(b) = Fixed Cost + Variable Cost x Number of Units
C(b) = 180,000 + 25(b)
[B]Set up Revenue Function R(b):[/B]
R(b) = 40b
Set them equal to each other
180,000 + 25b = 40b
Subtract 25b from each side:
15b = 180,000
Divide each side by 15
[B]b = 12,000 for break even[/B]
A company has a fixed cost of $26,000 / month when it is producing printed tapestries. Each item thaA company has a fixed cost of $26,000 / month when it is producing printed tapestries. Each item that it makes has its own cost of $34. One month the company filled an order for 2400 of its tapestries, selling each item for $63. How much profit was generated by the order?
[U]Set up Cost function C(t) where t is the number of tapestries:[/U]
C(t) = Cost per tapestry * number of tapestries + Fixed Cost
C(t) = 34t + 26000
[U]Set up Revenue function R(t) where t is the number of tapestries:[/U]
R(t) = Sale Price * number of tapestries
R(t) = 63t
[U]Set up Profit function P(t) where t is the number of tapestries:[/U]
P(t) = R(t) - C(t)
P(t) = 63t - (34t + 26000)
P(t) = 63t - 34t - 26000
P(t) = 29t - 26000
[U]The problem asks for profit when t = 2400:[/U]
P(2400) = 29(2400) - 26000
P(2400) = 69,600 - 26,000
P(2400) = [B]43,600[/B]
A company has a fixed cost of $34,000 and a production cost of $6 for each unit it manufactures. A uA company has a fixed cost of $34,000 and a production cost of $6 for each unit it manufactures. A unit sells for $15
Set up the cost function C(u) where u is the number of units is:
C(u) = Cost per unit * u + Fixed Cost
C(u) = [B]6u + 34000[/B]
Set up the revenue function R(u) where u is the number of units is:
R(u) = Sale price per unit * u
R(u) = [B]15u[/B]
A company is planning to manufacture a certain product. The fixed costs will be $474778 and it willA company is planning to manufacture a certain product. The fixed costs will be $474778 and it will cost $293 to produce each product. Each will be sold for $820. Find a linear function for the profit, P , in terms of units sold, x .
[U]Set up the cost function C(x):[/U]
C(x) = Cost per product * x + Fixed Costs
C(x) = 293x + 474778
[U]Set up the Revenue function R(x):[/U]
R(x) = Sale Price * x
R(x) = 820x
[U]Set up the Profit Function P(x):[/U]
P(x) = Revenue - Cost
P(x) = R(x) - C(x)
P(x) = 820x - (293x + 474778)
P(x) = 820x - 293x - 474778
[B]P(x) = 527x - 474778[/B]
A company makes toy boats. Their monthly fixed costs are $1500. The variable costs are $50 per boat.A company makes toy boats. Their monthly fixed costs are $1500. The variable costs are $50 per boat. They sell boats for $75 a piece. How many boats must be sold each month to break even?
[U]Set up Cost function C(b) where t is the number of tapestries:[/U]
C(b) = Cost per boat * number of boats + Fixed Cost
C(b) = 50b + 1500
[U]Set up Revenue function R(b) where t is the number of tapestries:[/U]
R(b) = Sale Price * number of boats
R(b) = 75b
[U]Break even is where Revenue equals Cost, or Revenue minus Cost is 0, so we have:[/U]
R(b) - C(b) = 0
75b - (50b + 1500) = 0
75b - 50b - 1500 = 0
25b - 1500 = 0
To solve for b, we [URL='https://www.mathcelebrity.com/1unk.php?num=25b-1500%3D0&pl=Solve']type this equation in our math engine[/URL] and we get:
b = [B]60[/B]
A company specializes in personalized team uniforms. It costs the company $15 to make each uniform aA company specializes in personalized team uniforms. It costs the company $15 to make each uniform along with their fixed costs at $640. The company plans to sell each uniform for $55.
[U]The cost function for "u" uniforms C(u) is given by:[/U]
C(u) = Cost per uniform * u + Fixed Costs
[B]C(u) = 15u + 640[/B]
Build the revenue function R(u) where u is the number of uniforms:
R(u) = Sale Price per uniform * u
[B]R(u) = 55u[/B]
Calculate break even function:
Break even is where Revenue equals cost
C(u) = R(u)
15u + 640 = 55u
To solve for u, we [URL='https://www.mathcelebrity.com/1unk.php?num=15u%2B640%3D55u&pl=Solve']type this equation into our search engine[/URL] and we get:
u = [B]16
So we break even selling 16 uniforms[/B]
A company that manufactures lamps has a fixed monthly cost of $1800. It costs $90 to produce each lA company that manufactures lamps has a fixed monthly cost of $1800. It costs $90 to produce each lamp, and the selling price is $150 per lamp.
Set up the Cost Equation C(l) where l is the price of each lamp:
C(l) = Variable Cost x l + Fixed Cost
C(l) = 90l + 1800
Determine the revenue function R(l)
R(l) = 150l
Determine the profit function P(l)
Profit = Revenue - Cost
P(l) = 150l - (90l + 1800)
P(l) = 150l - 90l - 1800
[B]P(l) = 60l - 1800[/B]
Determine the break even point:
Breakeven --> R(l) = C(l)
150l = 90l + 1800
[URL='https://www.mathcelebrity.com/1unk.php?num=150l%3D90l%2B1800&pl=Solve']Type this into the search engine[/URL], and we get [B]l = 30[/B]
A corn refining company produces corn gluten cattle feed at a variable cost of $84 per ton. If fixeA corn refining company produces corn gluten cattle feed at a variable cost of $84 per ton. If fixed costs are $110,000 per month and the feed sells for $132 per ton, how many tons should be sold each month to have a monthly profit of $560,000?
[U]Set up the cost function C(t) where t is the number of tons of cattle feed:[/U]
C(t) = Variable Cost * t + Fixed Costs
C(t) = 84t + 110000
[U]Set up the revenue function R(t) where t is the number of tons of cattle feed:[/U]
R(t) = Sale Price * t
R(t) = 132t
[U]Set up the profit function P(t) where t is the number of tons of cattle feed:[/U]
P(t) = R(t) - C(t)
P(t) = 132t - (84t + 110000)
P(t) = 132t - 84t - 110000
P(t) = 48t - 110000
[U]The question asks for how many tons (t) need to be sold each month to have a monthly profit of 560,000. So we set P(t) = 560000:[/U]
48t - 110000 = 560000
[U]To solve for t, we [URL='https://www.mathcelebrity.com/1unk.php?num=48t-110000%3D560000&pl=Solve']type this equation into our search engine[/URL] and we get:[/U]
t =[B] 13,958.33
If the problem asks for whole numbers, we round up one ton to get 13,959[/B]
A gym membership has a $50 joining fee plus charges $17 a month for m monthsA gym membership has a $50 joining fee plus charges $17 a month for m months
Build a cost equation C(m) where m is the number of months of membership.
C(m) = Variable Cost * variable units + Fixed Cost
C(m) = Months of membership * m + Joining Fee
Plugging in our numbers and we get:
[B]C(m) = 17m + 50
[MEDIA=youtube]VGXeqd3ikAI[/MEDIA][/B]
A manufacturer has a monthly fixed cost of $100,000 and a production cost of $10 for each unit produA manufacturer has a monthly fixed cost of $100,000 and a production cost of $10 for each unit produced. The product sells for $22/unit.
The cost function for each unit u is:
C(u) = Variable Cost * Units + Fixed Cost
C(u) = 10u + 100000
The revenue function R(u) is:
R(u) = 22u
We want the break-even point, which is where:
C(u) = R(u)
10u + 100000 = 22u
[URL='https://www.mathcelebrity.com/1unk.php?num=10u%2B100000%3D22u&pl=Solve']Typing this equation into our search engine[/URL], we get:
u =[B]8333.33[/B]
A manufacturer has a monthly fixed cost of $100,000 and a production cost of $12 for each unit produA manufacturer has a monthly fixed cost of $100,000 and a production cost of $12 for each unit produced. The product sells for $20/unit
[U]Cost Function C(u) where u is the number of units:[/U]
C(u) = cost per unit * u + fixed cost
C(u) = 12u + 100000
[U]Revenue Function R(u) where u is the number of units:[/U]
R(u) = Sale price * u
R(u) = 20u
Break even point is where C(u) = R(u):
C(u) = R(u)
12u + 100000 = 20u
To solve for u, we [URL='https://www.mathcelebrity.com/1unk.php?num=12u%2B100000%3D20u&pl=Solve']type this equation into our search engine[/URL] and we get:
u = [B]12,500[/B]
A manufacturer has a monthly fixed cost of $100,000 and a production cost of $14 for each unit produA manufacturer has a monthly fixed cost of $100,000 and a production cost of $14 for each unit produced. The product sells for $20/unit.
Let u be the number of units. We have a cost function C(u) as:
C(u) = Variable cost * u + Fixed Cost
C(u) = 14u + 100000
[U]We have a revenue function R(u) with u units as:[/U]
R(u) = Sale Price * u
R(u) = 20u
[U]We have a profit function P(u) with u units as:[/U]
Profit = Revenue - Cost
P(u) = R(u) - C(u)
P(u) = 20u - (14u + 100000)
P(u) = 20u - 14u - 100000
P(u) = 6u - 1000000
A manufacturer has a monthly fixed cost of $25,500 and a production cost of $7 for each unit produceA manufacturer has a monthly fixed cost of $25,500 and a production cost of $7 for each unit produced. The product sells for $10/unit.
Set up cost function where u equals each unit produced:
C(u) = 7u + 25,500
Set up revenue function
R(u) = 10u
Break Even is where Cost equals Revenue
7u + 25,500 = 10u
Plug this into our [URL='http://www.mathcelebrity.com/1unk.php?num=7u%2B25500%3D10u&pl=Solve']equation calculator[/URL] to get [B]u = 8,500[/B]
A manufacturer has a monthly fixed cost of $52,500 and a production cost of $8 for each unit produceA manufacturer has a monthly fixed cost of $52,500 and a production cost of $8 for each unit produced. The product sells for $13/unit.
Using our [URL='http://www.mathcelebrity.com/cost-revenue-profit-calculator.php?fc=52500&vc=8&r=13&u=20000%2C50000&pl=Calculate']cost-revenue-profit calculator[/URL], we get the following:
[LIST]
[*]P(x) = 55x - 2,500
[*]P(20,000) = 47,500
[*]P(50,000) = 197,500
[/LIST]
A pretzel factory has daily fixed costs of $1100. In addition, it costs 70 cents to produce each bagA pretzel factory has daily fixed costs of $1100. In addition, it costs 70 cents to produce each bag of pretzels. A bag of pretzels sells for $1.80.
[U]Build the cost function C(b) where b is the number of bags of pretzels:[/U]
C(b) = Cost per bag * b + Fixed Costs
C(b) = 0.70b + 1100
[U]Build the revenue function R(b) where b is the number of bags of pretzels:[/U]
R(b) = Sale price * b
R(b) = 1.80b
[U]Build the revenue function P(b) where b is the number of bags of pretzels:[/U]
P(b) = Revenue - Cost
P(b) = R(b) - C(b)
P(b) = 1.80b - (0.70b + 1100)
P(b) = 1.80b = 0.70b - 1100
P(b) = 1.10b - 1100
A tire repair shop charges $5 for tool cost and $2 for every minute the worker spends on the repair.A tire repair shop charges $5 for tool cost and $2 for every minute the worker spends on the repair. A) Write an equation of the total cost of repair, $y, in terms of a total of x minutes of repair.
y = Variable Cost + Fixed Cost
y = Cost per minute of repair * minutes of repair + Tool Cost
[B]y = 2x + 5[/B]
Break EvenFree Break Even Calculator - Given a fixed cost, variable cost, and revenue function or value, this calculates the break-even point
Dotty McGinnis starts up a small business manufacturing bobble-head figures of famous soccer playersDotty McGinnis starts up a small business manufacturing bobble-head figures of famous soccer players. Her initial cost is $3300. Each figure costs $4.50 to make. a. Write a cost function, C(x), where x represents the number of figures manufactured.
Cost function is the fixed cost plus units * variable cost.
[B]C(x) = 3300 + 4.50x[/B]
Earnings Before Interest and Taxes (EBIT) and Net IncomeFree Earnings Before Interest and Taxes (EBIT) and Net Income Calculator - Given inputs of sales, fixed costs, variable costs, depreciation, and taxes, this will determine EBIT and Net Income and Profit Margin
Fixed cost 500 marginal cost 8 item sells for 30fixed cost 500 marginal cost 8 item sells for 30.
Set up Cost Function C(x) where x is the number of items sold:
C(x) = Marginal Cost * x + Fixed Cost
C(x) = 8x + 500
Set up Revenue Function R(x) where x is the number of items sold:
R(x) = Revenue per item * items sold
R(x) = 30x
Set up break even function (Cost Equals Revenue)
C(x) = R(x)
8x + 500 = 30x
Subtract 8x from each side:
22x = 500
Divide each side by 22:
x = 22.727272 ~ 23 units for breakeven
Georgie joins a gym. she pays $25 to sign up and then $15 each month. Create an equation using thisGeorgie joins a gym. she pays $25 to sign up and then $15 each month. Create an equation using this information.
Let m be the number of months Georgie uses the gym. Our equation G(m) is the cost Georgie pays for m months.
G(m) = Variable Cost * m (months) + Fixed Cost
Plug in our numbers:
[B]G(m) = 15m + 25[/B]
High and Low MethodFree High and Low Method Calculator - Calculates the variable cost per unit, total fixed costs, and the cost volume formula
High-Low MethodFree High-Low Method Calculator - Calculates Variable Cost per Unit, Total Fixed Cost, and Cost Volume using the High-Low Method
it costs $75.00 for a service call from shearin heating and air conditioning company. the charge forit costs $75.00 for a service call from shearin heating and air conditioning company. the charge for labor is $60.00 . how many full hours can they work on my air conditioning unit and still stay within my budget of $300.00 for repairs and service?
Our Cost Function is C(h), where h is the number of labor hours. We have:
C(h) = Variable Cost * Hours + Fixed Cost
C(h) = 60h + 75
Set C(h) = $300
60h + 75 = 300
[URL='https://www.mathcelebrity.com/1unk.php?num=60h%2B75%3D300&pl=Solve']Running this problem in the search engine[/URL], we get [B]h = 3.75[/B].
Larry is buying new clothes for his return to school. He is buying shoes for $57 and shirts cost $15Larry is buying new clothes for his return to school. He is buying shoes for $57 and shirts cost $15 each. He has $105 to spend. Which of the following can be solved to find the number of shirts he can afford?
Let s be the number of shirts. Since shoes are a one-time fixed cost, we have:
15s + 57 = 105
We want to solve this equation for s. We [URL='https://www.mathcelebrity.com/1unk.php?num=15s%2B57%3D105&pl=Solve']type it in our math engine[/URL] and we get:
s = [B]3.2 or 3 whole shirts[/B]
Melissa runs a landscaping business. She has equipment and fuel expenses of $264 per month. If she cMelissa runs a landscaping business. She has equipment and fuel expenses of $264 per month. If she charges $53 for each lawn, how many lawns must she service to make a profit of at $800 a month?
Melissa has a fixed cost of $264 per month in fuel. No variable cost is given. Our cost function is:
C(x) = Fixed Cost + Variable Cost. With variable cost of 0, we have:
C(x) = 264
The revenue per lawn is 53. So R(x) = 53x where x is the number of lawns.
Now, profit is Revenue - Cost. Our profit function is:
P(x) = 53x - 264
To make a profit of $800 per month, we set P(x) = 800.
53x - 264 = 800
Using our [URL='http://www.mathcelebrity.com/1unk.php?num=53x-264%3D800&pl=Solve']equation solver[/URL], we get:
[B]x ~ 21 lawns[/B]
Soda cans are sold in a local store for 50 cents each. The factory has $900 in fixed costs plus 25 cSoda cans are sold in a local store for 50 cents each. The factory has $900 in fixed costs plus 25 cents of additional expense for each soda can made. Assuming all soda cans manufactured can be sold, find the break-even point.
Calculate the revenue function R(c) where s is the number of sodas sold:
R(s) = Sale Price * number of units sold
R(s) = 50s
Calculate the cost function C(s) where s is the number of sodas sold:
C(s) = Variable Cost * s + Fixed Cost
C(s) = 0.25s + 900
Our break-even point is found by setting R(s) = C(s):
0.25s + 900 = 50s
We [URL='https://www.mathcelebrity.com/1unk.php?num=0.25s%2B900%3D50s&pl=Solve']type this equation into our search engine[/URL] and we get:
s = [B]18.09[/B]
The cost of having a plumber spend h hours atThe cost of having a plumber spend h hours at your house if the plumber charges $60 for coming to the house and $70 per hour labor:
We have a fixed cost of $60 plus the variable cost of $70h. We add both for our total cost C(h):
[B]C(h) = $70h + 60[/B]
The cost of x ice cream if one ice cream cost $9 and the fixed cost is $8142The cost of x ice cream if one ice cream cost $9 and the fixed cost is $8142
Cost function is C(x) is:
C(x) = Cost per ice cream * number of ice creams + Fixed Cost
C(x) = [B]9x + 8142[/B]
The cost to rent a boat is $10. There is also charge of $2 for each person. Which expresion represenThe cost to rent a boat is $10. There is also charge of $2 for each person. Which expresion represents the total cost to rent a boat for p persons?
The cost function includes a fixed cost of $10 plus a variable cost of 2 persons for p persons:
[B]C(p) = 2p + 10[/B]
The fixed costs to produce a certain product are 15,000 and the variable costs are $12.00 per item.The fixed costs to produce a certain product are 15,000 and the variable costs are $12.00 per item. The revenue for a certain product is $27.00 each. If the company sells x products, then what is the revenue equation?
R(x) = Revenue per item x number of products sold
[B]R(x) = 27x[/B]
The total cost for 9 bracelets, including shipping was $72. The shipping charge was $9. Define yourThe total cost for 9 bracelets, including shipping was $72. The shipping charge was $9. Define your variable and write an equation that models the cost of each bracelet.
We set up a cost function as fixed cost plus total cost. Fixed cost is the shipping charge of $9. So we have the following cost function where n is the cost of the bracelets:
C(b) = nb + 9
We are given C(9) = 72 and b = 9
9n + 9 = 72
[URL='https://www.mathcelebrity.com/1unk.php?num=9n%2B9%3D72&pl=Solve']Run this through our equation calculator[/URL], and we get [B]n = 7[/B].
The total cost of producing x units for which the fixed cost are $2500 and the cost per unit $20The total cost of producing x units for which the fixed cost are $2500 and the cost per unit $20
Total Cost = Cost per Unit * Units + Fixed Cost
Total Cost = [B]20x + 2500[/B]
The total cost of producing x units for which the fixed costs are $2900 and the cost per unit is $25The total cost of producing x units for which the fixed costs are $2900 and the cost per unit is $25
[U]Set up the cost function:[/U]
Cost function = Fixed Cost + Variable Cost per Unit * Number of Units
[U]Plug in Fixed Cost = 2900 and Cost per Unit = $25[/U]
[B]C(x) = 2900 + 25x
[MEDIA=youtube]77PiD-VADjM[/MEDIA][/B]
You have $20 to spend on a taxi fare. The ride costs $5 plus $2.50 per kilometer.You have $20 to spend on a taxi fare. The ride costs $5 plus $2.50 per kilometer.
Let k be the number of kilometers.
Total Cost = Cost per kilometer * number of kilometers + Fixed Cost
With k for kilometers, 2.5 as cost per kilometer, and 5 as fixed cost, and 20 on total cost, we have:
2.5k + 5 = 20
To solve this equation for k, we [URL='https://www.mathcelebrity.com/1unk.php?num=2.5k%2B5%3D20&pl=Solve']type it in our math engine [/URL]and we get
k = [B]6[/B]
You work for a remote manufacturing plant and have been asked to provide some data about the cost ofYou work for a remote manufacturing plant and have been asked to provide some data about the cost of specific amounts of remote each remote, r, costs $3 to make, in addition to $2000 for labor. Write an expression to represent the total cost of manufacturing a remote. Then, use the expression to answer the following question. What is the cost of producing 2000 remote controls?
We've got 2 questions here.
Question 1: We want the cost function C(r) where r is the number of remotes:
C(r) = Variable Cost per unit * r units + Fixed Cost (labor)
[B]C(r) = 3r + 2000
[/B]
Question 2: What is the cost of producing 2000 remote controls.
In this case, r = 2000, so we want C(2000)
C(2000) = 3(2000) + 2000
C(2000) = 6000 + 2000
C(2000) = [B]$8000[/B]