# FINANCIAL MATHEMATICS

posted by .

The variable costs associated with a certain process are \$0.65 per item. The fixed costs per day have been calculated as \$200 with special costs estimated as \$0.02X^2, where X is the size of the production run (that is, number of items produced). Therefore, the total cost function for the production of x items is: TC= 200-0.65x-0.02x^2

a.Calculate the size of the daily run that will minimize cost per item?

b.Find the cost of a days production for a run that minimize cost per item?

## Similar Questions

1. ### Economics

You’ve been hired by an unprofitable firm to determine whether it should shut down its unprofitable operation. The firm currently uses 70 workers to produce 300 units of output per day. The daily wage (per worker) is \$100, and the …
2. ### Advanced Production

Montegut Manufacturing produces a product for which the annual demand is 10,000. Production averages 100 per day, while demand is 40 per day. Holding costs are \$1.00 per unit per year;set-up costs \$200.00. If they wish to produce this …
3. ### Accounting

Costs can be classified into two categories, fixed and variable costs. These costs behave differently based on the level of sales volumes. Suppose we are running a restaurant and have identified certain costs along with the number …
4. ### Math

A small publishing company is planning to publish a new book. The production costs will include one-time fixed costs (editing) and variable costs (printing). One time fixed cost will total \$76,322. The variable costs will be \$10 per …
5. ### General Economics

• Businesses often decide between using automation and labor in production. An automotive environment may have high fixed costs and low variable costs, and an industry that utilizes manual labor for production will have low fixed …
6. ### algebra

Jill’s Company produces lawnmowers. It has fixed costs of \$1000 per week and Variable costs of \$70 per lawn mower. Express the total weekly costs C(x) as a function of the production level x.
7. ### Math

Can I get some help with this question please?
8. ### finance

Calculating break-even. Jasmine Gonzales, administrative director of Small Imaging Center, has been asked by the practice members to see if it is feasible to add more staff to support the practice’s mammography service, which currently …
9. ### economics

A firm currently uses 40,000 workers to produce 180,000 units of output per day. The daily wage per worker is \$100, and the price of the firm's output is \$28. The cost of other variable inputs is \$500,000 per day. (Note: Assume that …
10. ### Cost Accounting

What effect can an increase in production volume has on per unit fixed costs, per unit variable costs, total fixed costs, and total variable costs?

More Similar Questions