What is the cost function???? HELP
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What is the cost function???? HELP

[From: ] [author: ] [Date: 11-08-15] [Hit: ]
and $0.10 a bag. Julia also spends $900 on rent, $40 on electricity, and $30 advertising each month. What is the cost function for Julia store per month?......
Julia opened a clothing store. She is selling sweatshirts. It costs her $10.50 for each sweatshirt, $4 per box for shirts, and $0.10 a bag. Julia also spends $900 on rent, $40 on electricity, and $30 advertising each month. What is the cost function for Julia store per month?
A.c=14.60n+970
b.c=14.60n + 900
c.c=10.50n + 970
d.c=970n +14.60

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Looks like (a).

Total Cost = Variable Cost + Fixed Cost; Fixed Costs is rent + electricity + advertising, or 900 + 40 + 30 =970.

Variable cost = $10.50 per sweatshirt + $4 per box + $.10 per bag, or 14.60. So if she sells n units she's incur 14.60n in costs.

TC = 14.60n + 970

Hope this is clear and helpful!

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Answer to the question is CHOICE (A)
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