Asked by Isaiah Estilien on Jul 31, 2024
Verified
Jeff prepares meals in the home of his customers.His fixed cost for transportation and supplies is $14.50.The labor and groceries needed for each family meal is $8.80,so the expense function is E = 5.7q + 8.8.
Fixed Cost
Expenses that do not change with the level of goods or services produced over the short term.
Expense Function
A mathematical representation or formula used to calculate the total expenses incurred by a business or individual.
- Learn the process of computing the expenses incurred in the creation of products.
Verified Answer
ZK
Zybrea KnightAug 01, 2024
Final Answer :
False
Explanation :
The expense function is given as E = 5.7q + 8.8, which means that the variable cost per meal is $5.7 (for labor) and $8.8 (for groceries). However, the fixed cost for transportation and supplies is not included in this function. Therefore, the total cost per meal would be E = 14.50 + 5.7q + 8.8, where $14.50 is the fixed cost and the variable costs are $5.7 for labor and $8.8 for groceries.
Learning Objectives
- Learn the process of computing the expenses incurred in the creation of products.