Answer:
Total cost of 1400 mailboxes is $32,802
Explanation:
Total cost equation applicable in this scenario is given below:
Total cost=average cost per unit*number of mailboxes
average per unit is $23.43
number of mailboxes is 1,400
Total cost=$23.43*1400
Total cost=$32,802
Total cost function sometimes is given as fixed cost plus variable cost per unit* number of output
However, in this case, it is believed that the only relevant cost is variable cost of $23.43 per unit of mailbox,hence the total cost was computed bearing in mind that only the variable cost is relevant.
