Warun Enterprises produces castings for the motor industry. The fixed costs are £110 and the variable cost per casting is £7

Question

Warun Enterprises produces castings for the motor industry. The fixed costs are £110 and the variable
cost per casting is £7Calculate the formula and show an equation for total costs (c) in terms of q, the quantity produced

Answer 1

Total Costs (C) = Fixed Costs (FC) + Variable Cost per casting (VC) × number of castings (q)

 

Now, just substitute the values for the fixed and variable costs into the equation:

 

     C = FC + VC•q