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:

Federal Income Taxes

Taxes levied by the federal government on individuals' and organizations' annual earnings.

Unemployment Taxes

Taxes employers pay to federal and state governments to fund unemployment benefits for workers who lose their jobs.

Internal Controls

Procedures and measures taken by a business to safeguard its assets, ensure accuracy and reliability in accounting records, and enhance operational efficiency.

Payroll

The total amount paid to employees for services they provided during a certain period.