London Company makes hearing aids. London has found that total electricity cost for the factory can be represented by the following formula: total annual electricity cost = $165,000 + $2.75x, where x = labour hours. Last year, London incurred 225,000 labour hours.
Required:
A. Identify the independent variable in London's cost formula.B. Calculate the total electricity cost incurred by London last year.
C. Calculate London Company's estimated electricity cost for next year if they have budgeted 245,000 labour hours.

Question

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The Answer of London Company makes hearing aids. London has found that total electricity cost for the factory can be represented by the following formula: total annual electricity cost = $165,000 + $2.75x, where x = labour hours. Last year, London incurred 225,000 labour hours.
Required:
A. Identify the independent variable in London's cost formula.B. Calculate the total electricity cost incurred by London last year.
C. Calculate London Company's estimated electricity cost for next year if they have budgeted 245,000 labour hours.

London Company Makes Hearing Aids