Question

The cost formula for monthly customer order processing cost has been established as $100 $0.15 per order. It is expected that 5,600 orders will be processed in May and 6,400 in June. Total order processing costs for May and June combined will be estimated to be:

Answer 1

Answer:

Results are below.

Explanation:

Giving the following information:

It is expected that 5,600 orders will be processed in May and 6,400 in June

Fixed cost= $100

Variable cost per order= $0.15

Total order cost= 100 + 0.15x

x= number of orders

For May:

Total order cost= 100 + 0.15*5,600

Total order cost= $940

For June:

Total order cost= 100 + 0.15*6,400

Total order cost= $1,060