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A music company produces a variety of electric guitars

Accounting Dec 08, 2020

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−1350x2C(x)=6800+8x−1350x2

where C(x)C(x) is given in dollars. Find the average cost of producing 130130 guitars.

a) $75.60

b) $130.014.800.00

c) $26.51

d) $18.57

e) $0.20

f) None of the above

Expert Solution

Suppose that the cost to produce xx guitars is C(x)=6800+8x−1350x2C(x)=6800+8x−1350x2. The total cost to produce 130130 guitars is then

C(130)=6800+8(13)−1350(302)=3446C(130)=6800+8(13)−1350(302)=3446

It follows that the average cost of producing 130 guitars is then

C(130)130=3446130=$26.51C(130)130=3446130=$26.51.

It follows that the correct answer is (c).

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