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Wacky Bird Company,a Producer of Fine Quality Clocks,produced 5,000 Clocks

Question 115

Essay

Wacky Bird Company,a producer of fine quality clocks,produced 5,000 clocks at a cost of $1,150,000 in July.In August,the company produced 3,000 clocks at a cost of $900,000.
Required:
A)Using the two data points,determine a cost function for Wacky Bird Company.
B)Determine the expected total cost if Wacky Bird Company produces 4,000 clocks.

Correct Answer:

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A)Variable cost per clock: ($1,150,000 -...

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