A piano manufacture has a daily fixed cost of $1,300 and a marginal cost of $1,600 per piano. On a given day, what is the cost of manufacturing 3 pianos ?
A) $3,500
B) $8,700
C) $6,100
D) $5,500

Question

A piano manufacture has a daily fixed cost of $1,300 and a marginal cost of $1,600 per piano. On a given day, what is the cost of manufacturing 3 pianos  ?
A) $3,500
B)  $8,700
C) $6,100
D)  $5,500

Quizplus · Accepted Answer

To find the total cost of manufacturing 3 pianos, we need to use the formula:
Total Cost = Fixed Cost + (Marginal Cost * Quantity)
Plugging in the given values, we get:
Total Cost = $1,300 + ($1,600 * 3)
Total Cost = $1,300 + $4,800
Total Cost = $6,100
Therefore, the cost of manufacturing 3 pianos is $6,100. The best choice is C.

A Piano Manufacture Has a Daily Fixed Cost of $1,300