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Monday 11 May 2020

Apollo manufactures PDAs at a variable cost of dollars, where x denotes the number of units manufactured per?

Patricia Bolduc: Find a function C that gives the total cost incurred by the manufacture of x PDAs?Start by letting x denotes the number of units manufactured per month, where x ≥ 0,because mathematically you do not want negative integers values and realistically you can not manufacture -1 or less number of units.From the question, the variable cost is described by the function:V(x) = 0.000003x³ âˆ' 0.03x² + 200x        (x ≥ 0)Apollo's monthly fixed cost is always $80,000, regardless of the level of PDA production. Thus, the constant function is: F(x) = 80,000.The total cost incurred by Apollo at any level of production is the sum of thevariable cost and the fixed cost. Total cost = Variable cost + Fixed costTherefore the total cost function is given by:C(x) = V(x) + F(x)Thus the function C that gives the total cost incurred by the manufacture of x PDAs is:C(x) = 0.000003x³ âˆ' 0.03x² + 200x + 80,000   (x ≥ 0)...Show more

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