The Monthly Cost C of Running the Machinery in a Factory

question 9

Multiple Choice

The monthly cost C of running the machinery in a factory for t hours is given by $C ( t ) = 10 t + 150.$ The number of hours t needed to produce x products is given by $t ( x ) = 9 x.$ Find the equation representing the cost C of manufacturing x products.

• A) \(C ( x ) = 90 x + 150\)
• B) \(C ( x ) = 90 x + 1500\)
• C) \(C ( x ) = 19 x + 150\)
• D) \(C ( x ) = 19 x + 160\)
• E) \(C ( x ) = 10 x + 159\)

---

Definitions:

Average Total Cost

The total of all costs (fixed and variable) divided by the total output produced, representing the per-unit cost on average.

Contribution Format

A type of income statement where fixed and variable costs are separated to calculate contribution margin.

Traditional Format

A method of organizing income statement or other financial statements using a conventional structure, typically separating costs into fixed and variable categories.

Variable Selling Expense

Costs that vary directly with the volume of sales or production, such as commissions and shipping charges.