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15-10 - 15-10 15-22(continued(3(continued The total cost of...

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15-10 15-22 (continued) (3) (continued) The total cost of buying the connectors is given by the cost equation: Cost of buying = $1.80x These total costs are equal when: $1.80x = $1.40x + $15,000 $0.40x = $15,000 x = 37,500 connectors 15-23 Process Further into (1) Sell Shampoo Shampoo/Conditioner Sales revenue (3,000 units) $30,000 $48,000 Relevant variable costs: Further processing costs -- $12,000 Variable selling costs $3,000 7,500 Total relevant costs (3,000) (19,500) Sales minus relevant variable costs $27,000 $28,500
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