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The Cost Components of a Heater Include $35 for the Compressor

Question 42

Multiple Choice

The cost components of a heater include $35 for the compressor, $12 for the sheet molded compound frame, and $80 per unit for assembly. The factory machines and tools cost is $55,000. The company expects to produce 1,500 heaters in the coming year. What cost function best represents these costs?


A) y = 1,500 + 127X
B) y = 1,500 +55,000X
C) y = 55,000 + 1,500X
D) y = 55,000 +127X

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