MANUFACTURING

Mathematics

1 answer:

Margaret [11]3 years ago

3 0

Answer:

Total cost is $205328

Step-by-step explanation:

Given data:

cost C(q) = 0.1 q^3 - 0.5 q^2 + 500 q + 200

current units q = 4 ( 4000 units )

The current level of production is 4000 ( 4 )units, and manufacturer is planning to upgrade this to 4100 ( 4.1 ) units

C'(q) = 3 * 0.1 q^2 - 2 * 0.5 q + 500

C'(q) = 0.3 q2 - q + 500

C(4.1) - C(4) ≈ C’(4) x Δq

≈ C’(4) x 0.1

≈ ( 0.3 * 4^2 - 4 + 500 ) x 0.1

≈ ( 0.3 * 16 - 4 + 500 ) x 0.1

≈ 500.8 x 0.1 ≈ 50.08

total cost = 4100 x 50.08 = $205328

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