Unformatted text preview: x TVs per week. Also sketch this cost as a function of number of TVs produced per week. (label all axes and intercepts) Sol: (5) (3) 2. LG paid out $1.5 million last month for the raw materials required to make 100,000 washing machines. They also paid out $60,000 last month in electricity bills. Which of this is a direct cost, and which is an indirect cost? Sol: (2) Raw materials are direct costs. Equipment Maintenance is treated as indirect costs. $2M x TC...
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- Spring '08