Question

Given the cost formula, y = $7,000 + $1.80x, total cost for an activity level of 4,000 units would be:

Answer 1

The total cost for this certain activity level can be calculated by substituting 4000 to the x of the equation given above,
                          y = 7000 + 1.8(4000)
                          y = 14200

Thus, the total cost of the activity level is $14,200.