The Marginal Cost of Manufacturing $x$ Yards of a Certain Fabric Is

question 2

Multiple Choice

The marginal cost of manufacturing $x$ yards of a certain fabric is
$$C ^ { \prime } ( x ) = 3 - 0.01 x + 0.000006 x ^ { 2 }$$
in dollars per yard. Find the increase in cost if the production level is raised from 1500 yards to 5500 yards.

• A) \(\$ 188,000.00\)
• B) \(\$ 198,000.00\)
• C) \(\$ 178,000.00\)
• D) \(\$ 218,000.00\)
• E) \(\$ 208,000.00\)

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Definitions:

Selling Price

The price at which a product or service is sold to customers.

Break-Even Point

The point at which total costs equal total revenue, resulting in no profit or loss for the business.

Fixed Costs

Regardless of how much is produced or sold, costs for rent, salaries, and insurance remain unchanged.

Variable Costs

Prices that adjust based on the quantity of products made or sold.