Solve the Problem $\bar { C } ( x ) = \frac { 2,660 + 40 x } { x }$

question 285

Multiple Choice

Solve the problem.
-An on-demand printing company has monthly overhead costs of $1,900 in rent, $450 in electricity, $80 for phone service, and $230 for advertising and marketing. The printing cost is $40 per
Thousand pages for paper and ink. The average cost for printing x thousand pages can be represented by
The function $\bar { C } ( x ) = \frac { 2,660 + 40 x } { x }$ For a given month, if the printing company could print an unlimited number of pages, what value would the
Average cost per thousand pages approach? What does this mean in the context of the problem?

• A) The average cost would approach $2,660 per thousand pages. This is the total of the fixed monthly costs.
• B) The average cost would approach $40 per thousand pages or equivalently $0.04 per page. This is the cost per page in the absence of fixed costs.
• C) The average cost would approach infinity. The more pages the company prints, the higher the average cost.
• D) The average cost would approach $0 per thousand pages. The more pages the company prints, the lower the average cost.

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Definitions:

Operating Income

The profit realized from a business's core operations before taxes and interest.

Net Cash Inflows

The amount of cash that a company receives minus the amount of cash it spends over a certain period.

Profitability Computed

Refers to the calculation of a company's earnings versus its expenses to determine financial performance.

Average Annual

Average annual typically refers to the mean amount or figure calculated over a year's period, often used in financial, operational, or performance metrics.