Question: A manufacturing process costs RM6,500 to set up for one years use. If items cost RM85 each to produce and other costs amount to 3.5x^2,

A manufacturing process costs RM6,500 to set up for one year’s use. If items cost RM85 each to produce and other costs amount to 3.5x^2, where x is the production in hundreds, find the level of production that will minimise the cost per item over the year. What will the total cost amount to at this level of production ?

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Minimizing Cost per Item Step 1 Define the Total Cost Function Let x be the production in hundreds egx 200 for 20000 items Setup CostRM6500 Production ... View full answer

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