Yummy Potato Chip Company Has Manufacturing Plants in N $C \left( q _ { 1 } , q _ { 2 } \right) = 2 q _ { 1 } ^ { 2 } + q _ { 1 } q _ { 2 } + q _ { 2 } ^ { 2 } + 420$

question 50

Essay

Yummy Potato Chip Company has manufacturing plants in N.Y.and N.J.The cost of manufacturing depends on the quantities (in thousand of bags), q₁ and q₂, produced in the N.Y.and N.J.factories respectively.Suppose the cost function is given by $C \left( q _ { 1 } , q _ { 2 } \right) = 2 q _ { 1 } ^ { 2 } + q _ { 1 } q _ { 2 } + q _ { 2 } ^ { 2 } + 420$ (a)Find $C ( 10,25 )$ (b)By comparing the terms $2 q _ { 1 } ^ { 2 }$ and $q _ { 2 } ^ { 2 }$ in the above expression, the manager concluded that it is more expensive to produce in the N.Y.factory.Will shifting all the production to the N.J.factory minimize the production cost?

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Definitions:

Accrued Revenues

Earnings that have been recognized for accounting purposes but have not yet been received in cash or other assets, typically resulting from services rendered or goods delivered.

Interim Period

A financial reporting period that is shorter than a full fiscal year, often quarterly.

Accounting Period

A specific duration of time for which financial statements are prepared, often annually or quarterly.

Accumulated Depreciation

The cumulative depreciation expense recorded for an asset from the time it was first utilized.