Business application

Question

The total cost of production is C(x) = setup cost + operating cost. Company determined that C(x) is 20 shillings times number of machines in use plus 4.8 schillings per each hour of operation, which is C(x) = 20x + 4.8(number of hours of operation) by using x machines. They have an order for 8000 wool yarns. Each machine produces 30 standard wool yarns per hour. 

 

• The 1st question is: “What is the number of hours needed to produce 8000 wool yarns?”

• The 2nd question is: “What is the equation of total cost?”

• The 3rd question is: “Find number of machines when Cost function is minimized”.       Use Second derivative test only; any other solution will not be accepted.

Answer 1