A division of Ditton Industries manufactures a deluxe toaster oven. Management h

Question

A division of Ditton Industries manufactures a deluxe toaster oven. Management has determined that the daily marginal cost function associated with producing these toaster ovens is given by

C '(x) = 0.0009x2 ? 0.16x + 21

where C '(x) is measured in dollars/unit and x denotes the number of units produced. Management has also determined that the daily fixed cost incurred in the production is $800.

(a) Find the total cost incurred by Ditton in producing the first 300 units of these toaster ovens per day.
$  

(b) What is the total cost incurred by Ditton in producing the 201st through 300th units/day?
$

Explanation / Answer

C '(x) = 0.0009x2 ? 0.16x + 21

TC(x)= 0.0003x^3 - 0.08x^2 + 21x + 800

Integrating the marginal cost function gives us the Total cost function

TC(300) = $ 8000

TC(200) = $4200

TC(201<=X<=300)= TC(300)- TC(200)= 8000 - 4200 = $3800

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