06 Fixed and Variable Expenses

The Gidget Widget Corporation produces widgets. The fixed

expenses are $65,210, and the variable expenses are $4.22 per widget. Express the expense function algebraically.

• $E=4.22q+62.210$

• $E=65,210q+4.22$

A corporation produces mini-widgets. The variable expenses are $1.24 per mini-widget, and the fixed expenses are $142,900. How much does it cost to produce 1 mini-widget?

• $142,901.24

• $142,900

• $142,902.48

• $1.24

A corporation produces mini-widgets. The variable expenses are $1.24 per mini-widget, and the fixed expenses are $142,900. How much does it cost to produce 20,000 mini-widget?

• $167,700

• $142,900

• Not enough information

• $24,000

The expense function for the Wonder Widget is E = 4.14q + 55,789. What is the fixed cost in the expense function?

• $4.14

• $55,789

The expense function for the Wonder Widget is E = 4.14q + 55,789. What is the variable cost in the expense function?

• $4.14

• $55,789

Wind Up Corporation manufactures widgets. The monthly expense equation is E = 3.20q + 56,000. They plan to sell the widgets to retailers at a wholesale price of $6.00 each. What is the revenue equation?

• R = 6.00q

• R = 5.00q

• R = 7.00 q

Wind Up Corporation manufactures widgets. The monthly expense equation is E = 3.20q + 56,000. They plan to sell the widgets to retailers at a wholesale price of $6.00 each. How many widgets must be sold to reach the breakeven point?

• 20,000

• 10,000

• 30,000

• 40,000