The formula that expresses the the total cost to the number of liters produced is C = $2 million + $0.5 million(l)
Total cost is the sum of fixed cost and variable cost. Fixed cost is the cost of buying the machine. Variable cost is the cost of the raw materials.
Total cost = fixed cost + (variable cost x liters produced)
= $2 million + ($0.5 million x l)
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