Custom Computers is a company started by two engineering students to assemble and market personal

| June 14, 2016

Question
Custom Computers is a company started 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, compute 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

3-39 Account Analysis

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