A company sells hand towels at ₹ 100 per unit. The fixed cost for the company to manufacture hand towels is ₹ 35,000 and variable cost is estimated to be 30% of total revenue. What will be the total cost function for manufacturing hand towels?

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KollegeApply · Accepted Answer

35000 + 30x Explanation: Here, fixed cost = ₹ 35,000 Total revenue = ₹ 100x, if x units are sold Variable cost = $\frac{30}{100}$ $\times$ Revenue = $\frac{30}{100}$ xx 100x = 30x $\therefore$ Total cost function = F.C. + V.C. = 35,000 + 30x

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