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Will's Omelet Factory Produces 2,500 Omelets a Day

Question 117

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Will's omelet factory produces 2,500 omelets a day. They've determined that their daily fixed costs are $4,000 with a variable cost of fifteen cents per omelet. (a) What is the total cost to make a day's omelets, and (b) what should Will charge for each omelet to make a 10% profit, rounded to the next whole dollar?

Correct Answer:

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(a) $4,375 TC = F + (VC*Q) = $...

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