Question

Average Cost. A company manufacturing snowboards has fixed costs of $200 per day and total costs of $3800 per day for a daily output of 20 boards.

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

Answer 1

output =  x 

Average cost  = C(n)/x = a/x  b

x = 20

a/x + b = 200

a+ bx = 3800

The cost per board would be : 3800/20 = $ 190

so the cost equation would be  : C(x) = 200 + 190x

Hope this helps