Solve the Problem. -Let C(x) = 900 + 30x Be the Cost to the Cost

question 314

Multiple Choice

Solve the problem.
-Let C(x) = 900 + 30x be the cost to manufacture x items. Find the average cost per item to produce 20 items. Round to the nearest dollar.

• A) $620
• B) $1395
• C) $75
• D) $613

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Definitions:

Favourable

A term usually used in finance and accounting to refer to variances or differences that are beneficial to a company's financial health.

Flexible Budget Formula

A budget that adjusts to changes in the volume of activity, helping companies to better manage costs.

Fixed Overhead Costs

Expenses that do not change with the level of output within a certain range of activity, such as rent, salaries, and insurance.

Variable Costs

Expenses that fluctuate in unison with the amount of production or the quantity of goods produced.