Question

J&J have 40 staff. 30 are paid $29 an hour and others are fixed salary staff with $7,500 paid monthly. What is the total cost of personnel?

The cost of a pen includes $30 for the glass, $75 for the wooden frame, and $80 for assembly. The assembly desk and tools cost $5000. Two hundred fifty frames are expected to be produced in the coming year. What cost function best represents these costs?

Using cost function Y = a + bX, If Y = $75,000, a = $30,000, and X = 2,500, what is b?

For the linear equation of Y = a + bX, X is known as?

level of activity	total cost	units of activity
highest	28000	15000
lowest	22000	10000
diff	6000	5000

Answer 1

1. Total Cost of personnel = 30*29*x + 7500*10

= 75,000+870x

Where x is the number of hours

2. Cost function = $5000+185x

Where x = number of pens produced

3. Y = a + bX

Putting given values,

75,000 = 30,000+ b*2500

b = 18

4. X is known as the variable i.e. level of activity such as units of production etc.

5.

level of activity	total cost	units of activity
highest	28000	15000
lowest	22000	10000
diff	6000	5000

b = 6000/5000 = 1.2

a = 10,000