A division of Ditton Industries manufactures a deluxe toaster oven. Management has determined that the daily marginal cost function associated with producing these toaster ovens is given by C'(x) = 0.0003x2−0.18x + 21 where C '(x) is measured in dollars/unit and x denotes the number of units produced. Management has also determined that the daily fixed cost incurred in the production is $800. (a) Find the total cost incurred by Ditton in producing the first 300 units of these toaster ovens per day. (b) What is the total cost incurred by Ditton in producing the 201st through 300th units/day?
A division of Ditton Industries manufactures a deluxe toaster oven. Management has determined that the daily marginal cost function associated with producing these toaster ovens is given by C'(x) = 0.0003x2−0.18x + 21 where C '(x) is measured in dollars/unit and x denotes the number of units produced. Management has also determined that the daily fixed cost incurred in the production is $800. (a) Find the total cost incurred by Ditton in producing the first 300 units of these toaster ovens per day. (b) What is the total cost incurred by Ditton in producing the 201st through 300th units/day?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 9E
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A division of Ditton Industries manufactures a deluxe toaster oven. Management has determined that the daily marginal cost function associated with producing these toaster ovens is given by
C'(x) = 0.0003x2−0.18x + 21
where C '(x) is measured in dollars/unit and x denotes the number of units produced. Management has also determined that the daily fixed cost incurred in the production is $800.
(a) Find the total cost incurred by Ditton in producing the first 300 units of these toaster ovens per day.
(b) What is the total cost incurred by Ditton in producing the 201st through 300th units/day?
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