Question

Unit cost of watches: $19.50Number of watches produced: 1,500Fixed costs:$6,500Total costs?

Answer 1

$ 35750

Explanation

The formula to calculate total cost is the following:

$total\text{ cost =total fixed cost+total variable cost}$

so

Step 1

in this case, the variable cost is the cost from the watches ( because it depends on the number of watches produced)

hence

a)let

$\begin{gathered} variable\text{ cost=unit cost of watches*number of watches} \\ variable\text{ cost= 19.50}\frac{\text{ \ }}{unit}1500\text{ units} \\ variable\text{ cost= \ 29250} \end{gathered}$

and

$fixed\text{ cost=\ 6500}$

b) finally, replace in the formula

$\begin{gathered} total\text{cost=totalf}\imaginaryI\text{xedcost+totalvar}\imaginaryI\text{ablecost} \\ total\text{ costs=29250+6500} \\ total\text{ costs=35750} \end{gathered}$

therefore, the answer is

$ 35750

I hope this helps you