What is the total cost to make 1,000 cards?

Question

The cost for a business to make greeting cards can be divided into one-time cost (e.g., a printing machine) and repeated costs (e.g., ink and paper). Suppose the total cost to make 300 cards is $800, and the total cost to make 550 cards is $1,300. What is the total cost to make 1,000 cards? Round your answer to the nearest dollar.

I don't even know how to find the answer. Someone please help me.

 

A) 2,000

B) 2,200

C) 2,364

D) 2,667

Answer 1

Let f = fixed cost and

v = variable cost

then

800= f + 300v

1300 = f + 550v

subtract first from second eqn

500 = 250v

v = 2, and f = $200

cost for 1000 cards is

= $200 + 1000*2 = $2200

 

Choice B is correct