Developing a model for total cost


Assignment:

A computer rework center has the capacity to rework 300 computers per day. The expected number of computers needing to be reworked per day is 225. The center is paid $26 for each computer reworked. The fixed cost of renting the reworking equipment is $250 per day. Work space rents for $150 per day. The cost of material is $18 per computer and labor costs $3 per computer.

  • Develop a model for total cost.
  • Develop a model for total profit.
  • What is the break-even number of computers reworked per day?

Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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Cost Accounting: Developing a model for total cost
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