Solve the Problem $C ( x ) = 25 x + 15,000$

question 465

Multiple Choice

Solve the problem.
-A company that produces computer printers has costs given by the function $C ( x ) = 25 x + 15,000$ , where $x$ is the number of computer printers manufactured and $C ( x )$ is measured in dollars. The average cost to manufacture each computer printer is given by
$$\bar { C } ( x ) = \frac { 25 x + 15,000 } { x } .$$
What is the horizontal asymptote for the function $\overline { \mathrm { C } }$ ? Describe what this means in practical terms.

• A) \(\mathrm { y } = 25\); \(\$ 25\) is the least possible cost for producing each computer printer.
• B) \(\mathrm { y } = 15,000 ; 15,000\) is the maximum number of computer printers the company can produce.
• C) \(\mathrm { y } = 25 ; 25\) is the minimum number of computer printers the company can produce.
• D) \(y = 15,000\); \(\$ 15,000\) is the least possible cost for running the company.

Distinguish between direct materials, direct labor, and manufacturing overhead.

Understand the concepts of prime costs and conversion costs.

Recognize nonmanufacturing costs.

Analyze cost behavior in relation to cost objects.

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