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The Average Cost/unit for the Production of a Particular Component

question 9

Essay

The average cost/unit for the production of a particular component at a manufacturing plant varies with the number of units produced in each batch. The data are given below.
 Number of units produced  Cost/unit 049$37.7250100$25.02\begin{array} { | l | l | } \hline \text { Number of units produced } & \text { Cost/unit } \\\hline 0 - 49 & \$ 37.72 \\\hline 50 - 100 & \$ 25.02 \\\hline\end{array}
Suppose the selling price of each unit is $35.
Use a two-way data table to show how the profit changes as a function of demand and the selling price of the product. Vary the demand from 20 units to 80 units in increments of 10 units and selling price from $30 to $40 in increments of $2.

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Definitions:

Enforceable

A term applied to contracts or agreements that are legally binding and can be upheld in court.

Freedom Of Contract

The principle that individuals have the liberty to enter into contracts of their choosing without undue government restriction.

Courts

Institutions vested with the power to adjudicate legal disputes between parties and carry out the administration of justice in civil, criminal, and administrative matters.

Public Policy

Principles and standards that guide government actions and decisions in order to serve the best interests of the general public or certain groups within it.

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