Final answer:
The total cost for Tools Plus Company to produce 370 drills is $36,450, considering both fixed rental costs and variable costs for materials and labor.
Step-by-step explanation:
The student has asked to find the total cost for the Tools Plus Company to produce 370 drills. The total cost includes both variable costs (materials and labor for each drill) and fixed costs (monthly rent for the manufacturing space).
To calculate the total cost, we need to consider both the fixed costs and the variable costs. The fixed cost for renting the space is $5,000 per month. Each drill requires $49 worth of materials and $36 worth of labor, so the variable cost per drill is $49 + $36 = $85. To find the total variable cost for 370 drills, we multiply $85 by 370, which equals $31,450.
Now, we add the fixed cost to the total variable cost to get the total cost: $5,000 + $31,450 = $36,450.
Therefore, the total cost of producing 370 drills is $36,450.