The total cost (in dollars) of manufacturing x auto body frames in C(x) = 60,000

Question

The total cost (in dollars) of manufacturing x auto body frames in C(x) = 60,000 +900x. Find the average cost per unit if 400 frames are produced. Find the marginal average cost at a production level of 400 units. Use the results from parts (A) and (B) to estimate the average cost per frame if 401 frames are produced. If 400 frames are produced, the average cost is $ 1050 per frame. The marginal average cost at a production level of 400 units is $ - 0.38 per frame. (Round to the nearest cent as needed.) Using the results from parts (A) and (B), the estimate of the average cost per frame if 401 frames are produced is $ (Round to the nearest cent as needed.)

Explanation / Answer

average cost for 400 units =1050 total cost = 400*1050=420000 marginal cost at 400 frames= -0.38 total cost for 401 frames = 420000-0.38= 419999.62 avg cost for 401 =419999.62/401= 1047.38

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