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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.
 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.
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.


Definitions:

Standardization

The process of implementing and developing technical standards to ensure uniformity and consistency across different products, services, or processes.

Commercial-Grade Equipment

High-quality, durable equipment designed to meet the demands of commercial or professional usage.

Proximity to Markets

The closeness of a business location to its customers, suppliers, and other vital resources, which can impact logistics and efficiency.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, in a given period.

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