A company is planning to manufacture snowboards. The fixed costs are $100 per da

ID: 2854727 • Letter: A

Question

A company is planning to manufacture snowboards. The fixed costs are $100 per day and total cost are $5200 per day at a daily output of 20 boards

A. Assuming that the total cost per day, c(X), is linearly related to the toatl output per day, x, write an equation for the cost function

B. The average cost per board for an output of Xboards is Given . find the average cost function.

C.sketch a graph of the average cost function, including any asymptotes, for 1 is less then or equal to X and 30 is greater then or equal to

D. What does the average cost per board tend to as production increases

Total cost = 5200

Fixed cost = 100

Variable cost total = 5100

Production = 20 board

Var cost / board = 255

A) c(X) = Variable cost *x + fixed cost

c(x) = 255 x+ 100

B) Average cost per board = 255 + 100/X

where x is the units produced

D) When production increases average cost per board decreases.

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