Suppose the cost of manufacturing 10 units of a product is R40 and the cost of 20 units is R70. If the cost
c is linearly related to output Q (units produced). Find the cost of producing 35 items.
[1] R115,00
[2] R121,67
[3] R113,33
[4] R65,00
[5] None of the above.

Question

Suppose the cost of manufacturing 10 units of a product is R40 and the cost of 20 units is R70. If the cost
c is linearly related to output Q (units produced). Find the cost of producing 35 items.
[1] R115,00
[2] R121,67
[3] R113,33
[4] R65,00
[5] None of the above.

anonymous · Answer

Form an equation.
Gradient = (70 - 40) / (20 - 10) = 30 / 10 = 3
Using (10 , 40):
c = 40 + 3(Q - 10) = 3Q + 10
Q = 35 units
c = 3(35) + 10 = R115

anonymous · Answer

Hello Turitw

Thank you so much for this answer.  I'm sorry, my internet connection dropped last night.

I really do appreciate it.  It helped a lot