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A music company produces a variety of electric guitars

Accounting

A music company produces a variety of electric guitars. The total cost of producing xx guitars is given by the function C(x)=6800+8x−1350C(x)=6800+8x−1350 where C(x)C(x) is given in dollars. Find the average cost of producing 130130 guitars.

a) $75.60$75.60

b) $130,014,800.00$130,014,800.00

c) $26.51$26.51

d) $18.57$18.57

e) $0.20$0.20

f) None of the above.

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The total cost of producing xx guitars is given by the function:

C(x)=6800+8x−1350=5450+8xC(x)=6800+8x−1350=5450+8x

The average cost function is:

A(x)=C(x)x=5450+8xx=5450x+8A(x)=C(x)x=5450+8xx=5450x+8

So:

The average cost of producing 130 guitars is:

A(130)=5450130+8≈$49.923A(130)=5450130+8≈$49.923

Hence:

Option (f) is correct.

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