document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=16507>Question 16507</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The general manager of Frozenaire Refrigerator Company determines that on Monday it cost the company a total of $25,000 to build 30 refrigerators and on Tuesday it cost $30,000 to build 40 refrigerators.  Determine for him the company's daily fixed costs and their marginal cost (that is, the cost to build one refrigerator). </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #8071 by </B><A HREF=/tutors/aboutme.mpl?userid=foleysdad><B>foleysdad(7)</B></A><img src=\"/images/stars/stars-05.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=foleysdad><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=8071\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> We are trying to find two answers here.  The cost per refrigerator and the overhead cost of the factory per day.\r<BR>\n" );
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document.write( "Let's assume the following variables:<BR>\n" );
document.write( "r = cost per refrigerator<BR>\n" );
document.write( "f = fixed costs (or overhead) per day for the factory\r<BR>\n" );
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document.write( "Monday is 30r + f = 25000<BR>\n" );
document.write( "Tuesday is 40r + f = 30000\r<BR>\n" );
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document.write( "Lets solve for f using Monday<BR>\n" );
document.write( "f= 25000 -30r<BR>\n" );
document.write( "Now that we know what f is in terms of r let's put it into Tuesday's equation.\r<BR>\n" );
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document.write( "40r + (25000 - 30r) = 30000<BR>\n" );
document.write( "40r -30r + 25000 = 30000<BR>\n" );
document.write( "10r + 25000 = 30000<BR>\n" );
document.write( "10r = 5000<BR>\n" );
document.write( "r = 500\r<BR>\n" );
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document.write( "Plug r into either equation.\r<BR>\n" );
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document.write( "30(500) + f = 25000<BR>\n" );
document.write( "15000 + f = 25000<BR>\n" );
document.write( "f = 10000\r<BR>\n" );
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document.write( "or\r<BR>\n" );
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document.write( "40(500) + f = 30000<BR>\n" );
document.write( "20000 + f = 30000<BR>\n" );
document.write( "f = 10000\r<BR>\n" );
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document.write( "The answers are :<BR>\n" );
document.write( "f (overhead) = 10,000 per day<BR>\n" );
document.write( "r (cost per refrigerator) = 500 per unit </SPAN>\n" );
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