Suppose a Company Has Estimated That the Marginal Cost of Manufacturing

question 56

Multiple Choice

Suppose a company has estimated that the marginal cost of manufacturing x pairs of a new line of jeans is $c ^ { \prime } ( x ) = 3 + 0.002 x + 0.000006 x ^ { 2 }$ (measured in dollars per pair) with a fixed start-up cost of c(0) = 2000. Find the cost of producing the first 1000 pair of jeans.

• A)$2000
• B)$4000
• C)$6000
• D)$10,000
• E)$3000
• F)$5000
• G)$8000
• H)$15,000

Grasp the significance of eliminating work duplication and bottlenecks through process reengineering.

Recognize the steps involved in reengineering core processes.

Understand the role of cost reduction and efficiency increase in process reengineering.

Identify key characteristics of a work process as defined by Michael Hammer.

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Definitions:

Obtained Value

The actual value or result achieved from a statistical test or experiment.

Amortized

The process of paying off a debt through regular payments that cover both principal and interest.

Principal Balance

The outstanding amount of a loan or mortgage that remains to be paid, not including interest.

Personal Loan

A type of unsecured loan provided by financial institutions based on the borrower’s creditworthiness without collateral.