TMI, a manufacturer of blank audiocassette tapes, has a monthly fixed cost of $10,900 and a variable cost of $0.50/tape. Find a function C that gives the total cost incurred by TMI in the manufacture of x tapes/month.
A) C(x) = 0.5x
B) C(x) = 0.5x + 10,900
C) C(x) = 10,900x + 0.5
D) C(x) = (0.5 + 10,900)x
E) C(x) = 10,900x

Question

Quizplus · Accepted Answer

The total cost incurred by TMI is the sum of the fixed cost and the variable cost. The variable cost is calculated as the cost per tape multiplied by the number of tapes produced.
So, we have:
Total Cost = Fixed Cost + Variable Cost
Variable Cost = Cost per Tape x Number of Tapes
Variable Cost = 0.5x
Fixed Cost = $10,900
Total Cost = 0.5x + $10,900
Therefore, the function that gives the total cost incurred by TMI in the manufacture of x tapes/month is C(x) = 0.5x + $10,900, which is option B.

TMI, a Manufacturer of Blank Audiocassette Tapes, Has a Monthly