3-39 Account Analysis Custom Computers is a company stated by two engineering students to assemble and market personal computers to faculty and students. The company operates out of the garage of one of the students’ homes. From the following costs of a recent month, computer the total cost function and total cost for the month:
Telephone $ 50, fixed
Utilities 260: fixed, 25% attributable to the garage, 75% to the house
Advertising 75, fixed
Insurance 80, fixed
Materials 7,500, variable, for five computers
Labor 1,800: $1,300 fixed plus $500 for hourly help for assembling five computers
SOLUTION PREVIEW
SOLUTION PREVIEW
3-39
Account analysis
|
particulars
|
Total cost
|
Variable cost
|
fixed cost
|
|
Telephone
|
50
|
0
|
50
|
|
Utilities
|
65
|
0
|
65
|
|
Advertising
|
75
|
0
|
75
|
