The cost function to represent the cost C ( x ) for printing x thousands pages for a given month if an on-demand printing company has monthly overhead costs of $ 1200 in rent, $ 420 in electricity, $ 100 for phone service, and $ 200 marketing and advertising. Also, the printing cost is $ 40 per thousand pages for paper and ink.
The cost function to represent the cost C ( x ) for printing x thousands pages for a given month if an on-demand printing company has monthly overhead costs of $ 1200 in rent, $ 420 in electricity, $ 100 for phone service, and $ 200 marketing and advertising. Also, the printing cost is $ 40 per thousand pages for paper and ink.
Solution Summary: The author explains how the cost function can be represented as C(x)=mx+b, where m is the variable cost to produce an item, and b the fixed cost.
The cost function to represent the cost C(x) for printing x thousands pages for a given month if an on-demand printing company has monthly overhead costs of $1200 in rent, $420 in electricity, $100 for phone service, and $200 marketing and advertising. Also, the printing cost is $40 per thousand pages for paper and ink.
(b)
To determine
The average cost function to represent the average cost C¯(x) for printing x thousands pages for a given month if an on-demand printing company has monthly overhead costs of $1200 in rent, $420 in electricity, $100 for phone service, and $200 marketing and advertising. Also, the printing cost is $40 per thousand pages for paper and ink.
(c)
To determine
To calculate: The values of C¯(20),C¯(50),C¯(100), and C¯(200) in the average cost function C¯(x)=40x+1920x
(d)
To determine
The meaning of C¯(200) with reference to the problem.
(e)
To determine
The value of average cost per thousand pages approach if the printing company could print an unlimited number of pages and interpret the meaning of mean with reference to the problem.
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