Total Operating Cost Formula for Corp.'s Scuba Diving Operations

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.
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