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

question 32

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.
​ $$\begin{array} { | l | l | } \hline \text { Number of Units Produced } & \text { Cost/Unit } \\\hline 0 - 49 & \$ 37.72 \\\hline 50 - 100 & \$ 25.02 \\\hline\end{array}$$ ​
Suppose the selling price of each unit is $35.
a. Build a model to calculate the profit of the manufacturing industry if the demand is 20.
b. Construct a data table that shows the profit per unit as a function of demand if the demand ranges between 20 units through 80 units in increments of 10 units.

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Definitions:

Normative Social Influence

Influence resulting from a person’s desire to gain approval or avoid disapproval.

Conformity

The process of aligning one's attitudes, beliefs, and actions with the norms, policies, or expectations of a group or society.

Mood Contagion

The phenomenon where emotional states are transferred from one person to another, often unconsciously.

Group Polarization

A social psychological phenomenon where discussions within a group lead to an exaggeration of the group's initial leanings, making their opinions more extreme.