Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / The total cost (in dollars) of manufacturing xx auto body frames is: C(x)=60,000+300xC(x)=60,000+300x
The total cost (in dollars) of manufacturing xx auto body frames is: C(x)=60,000+300xC(x)=60,000+300x. Find the average cost per unit if 500 frames are produced.
The given cost function is:
C(x)=60000+300xC(x)=60000+300x
Finding the average cost function by using the formula:
A(x)=C(x)xA(x)=60000+300xxA(x)=60000x+300A(x)=C(x)xA(x)=60000+300xxA(x)=60000x+300
Finding the average cost when x = 500 frames are produced:
A(500)=60000500+300A(500)=120+300A(500)=420A(500)=60000500+300A(500)=120+300A(500)=420
The average cost when 500 frames are produced is, $420 per unit.
