Question #6a90d

1 Answer
May 22, 2017

If 60 items per day are produced, the unit cost is minimum, i.e.,

$400.

Explanation:

C(x)=x^2-120x+4000. Completing the square, we get,

C(x)=x^2-2*60x+60^2-60^2+4000, i.e.,

C(x)=(x-60)^2+4000-3600=(x-60)^2+400,

Since, AA x in RR, (x-60)^2 >=0, C(x) >=400, which means that,

The Minimum Unit Cost is $400.

Further, for this minimum unit cost, if x items per day are produced, then,

C(x)=400 rArr (x-60)^2+400=400 rArr x=60.

Thus, if daily 60 items are produced, the unit cost is minimum, i.e.,

$400.

Enjoy Maths.!