number 14/15 A division of Ditton Industries manufactures a deluxe toaster oven.

Question

number 14/15

A division of Ditton Industries manufactures a deluxe toaster oven. Management has determined that the daily marginal cost function associated with producing these toaster ovens is given by c'(x)-0.0009x2-0.12x+22 where c'(x) is measured in dollars/unit and x denotes the number of units produced. Management has also determined that the daily fixed cost incurred in the production in $800.(a)Find the total cost incurred by Ditton in producing the first 300 unit of these toaster ovens per day. (b)What is the total cost incurred by Ditton in producing the 201st through 300th units/day? The management of Ditton Industries has determined that the daily marginal revenue function associated with selling x units of their deluxe toaster ovens is given by the following, where R'(x)=-0.1x+40 (a)Find the daily total revenue realized form the sale of 200 units of the toaster ovens. (b)Find the additional revenue realized when the production (and sales) level is increased from 240 to 340 units

Explanation / Answer

14. (a) C(x) = integral (C'(x)) = 0.0003 x^3 - 0.06 x^2 +22x + c

Daily fixed cost is 800, so, c=800

For first 300 units, x = 300, so C(x) = $10100

(b) For 201st to 300th unit, it is C(300) - C(200) = 10100 - 5200 = $4900

15. Same procedure. Integrate R'(x) to get R(x)

R(x) = -0.05x^2 + 40x + c

Assuming c=0 as no information is given.

R(x) = -0.05x^2 + 40x

(a) So, for 240 units, R(x) = $6720

(b) Additional revenue = R(340) - R(240) = 7820 - 6720 = $1100

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.