Problema Solution
the cost of producing 4 units is $204.80. the cost of producing 8 units is $209.60. how much does it cost to produce 12 units?
Answer provided by our tutors
We will assume that for starting the production there is fixed cost and for each product produce there is unit cost.Let 'y' represent the fixed cost and 'x' the unit cost, then we can write:
4x + y = 204.8
8x + y = 209.6
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click here to see the system of equations solved for x and y
........
x = $1.20
y = $200
The production of 12 units costs: 200 + 12*1.20 = $214.40.