A company manufactirung snowboards has fixed costs of $200 per day and total cost of $3800 per day at a daily output of 20 boards.

(A( Assuming that the total cost per day, C(x), is linearly related to the taotal out per dau,x, write an equation for the xost function

(B) The cost per board for an output of x boards is given by C(x)=C(x)/x, find the average cost function.

(C) What does the average cost per board tend to as production increases?

(D) sketch a graph of the average cost function, including any asympototes, for 1,=x,=30

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  2. 👎
  3. 👁
  1. A. $3800-200 = $3600 = Variable cost.

    $3600/20Boards = $180/board.

    C(x) = 180x + 200.

    1. 👍
    2. 👎
  2. C(x) = 180x + 200.

    1. 👍
    2. 👎

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