How is the total operating cost calculated for corp.'s scuba diving operations based on the given cost formula?
The cost formula for corp.'s scuba diving operating cost is $3,090 per month plus $339 per scuba diving-day. This means that for each additional scuba diving-day, the total operating cost increases by $339. The fixed monthly cost remains constant regardless of the number of diving-days. To calculate the total operating cost for a specific number of scuba diving-days in a month, you can follow these steps:
Calculation Steps:
1. Multiply the number of scuba diving-days by the cost per scuba diving-day ($339) to find the cost for those specific days.
For example, if there are 10 scuba diving-days in a month, the cost for those days would be 10 * $339 = $3,390.
2. Add the monthly fixed cost ($3,090) to the cost for the specific scuba diving-days.
Continuing with the example, the total operating cost for the month would be $3,090 + $3,390 = $6,480.
Therefore, for each additional scuba diving-day, the total operating cost increases by $339. The fixed monthly cost remains constant regardless of the number of diving-days. It's important to understand that this cost formula assumes a linear relationship between the number of scuba diving-days and the operating cost.