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A manufacturer incurs the following costs in producing x items in one day: fixed costs, $360; unit production cost, $42
Posted: Thu Jul 14, 2022 4:07 pm
by answerhappygod
- A Manufacturer Incurs The Following Costs In Producing X Items In One Day Fixed Costs 360 Unit Production Cost 42 1 (53.23 KiB) Viewed 17 times
A manufacturer incurs the following costs in producing x items in one day: fixed costs, $360; unit production cost, $42 per item; equipment maintenance and repairs, 0.1x2 dollars. Put together, the cost of manufacturing x items in one given day is given by C(x)=0.1x2+42x+360, where 0<x<150 a. Find the average total cost equation for this company. b. At what level(s) of output will the average total cost be at a maximum and/or a minimum? What is the average total cost at the maximum and/or minimum? Based on this information, what production level would you recommend for the company and why? c. If you can sell these items for $45 each, should you produce this product? Why or why not?