A greeting card company has an initial investment of $60,000. The cost of producing one dozen cards is $7.50.

Question

A greeting card company has an initial investment of $60,000. The cost of producing one dozen cards is $7.50.

Write the average cost per dozen C=C/x as a function of x, the number of dozens of cards produced.

C=

Find the value of C (15,000). Round answer to the nearest cent.

C=$

Answer 1

The cost to produce x dozen cards is:

C(x) = $60,000 + $7.50x

The cost per dozen of cards, C/x, is:

C/x = $60,000/x + $7.50

To find the cost to produce 15,000 dozen, set x = 15,000 and plug into the cost (C(X)) equation:

C(15,000) = $60,000 + ($7.50)(15,000) = $______ ?

As the directions state, round your answer to the nearest cent.