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Bob is planning to start an it business, servicing computers that are infected with viruses. to start his new enterprise, bob estimates that he will need to spend $5,000 on equipment $6,000 on premises, $4,000 on advertising. all of these costs are fixed. he is planning on charging his customers $250 each to fix an infected computer. for each computer that he fixes, he must spend $25 on parts and software. suppose we let x be the number of computers that bob fixes. if bob only fixes 50 computers, what is his total loss?



Answer :

anthougo

If Bob only fixes 50 computers, his total loss is $3,750.

What is the total loss?

The total loss results from the negative difference between the total revenue and the total costs.

The total costs consist of variable and fixed costs.

The result is a loss when the total costs exceed the total revenue.  This result becomes a profit or income when the total revenue exceeds the total costs.

Fixed Costs:

Equipment = $5,000

Premises = $6,000

Advertising = $4,000

Total fixed costs = $15,000

Variable cost per unit = $25

Selling price per unit = $250

Total number of computers fixed = 50

The total variable cost for 50 units = $1,250 (50 x $25)

The total costs (fixed and variable) = $16,250

The sales revenue for 50 units = $12,500 (50 x $250)

Loss = $3,750 ($12,500 - $16,250)

Thus, Bob will incur a total loss of $3,750 if he fixes only 50 computers based on his fixed and variable costs.

Learn more about fixed and variable costs at https://brainly.com/question/14872023

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