Question

I need to know how to solve this question in complete sentences

Answer 1

Let f be the montlhly cost for the company facilities, b the base cost for each unit produced and n the total number of units produced in a month.

Then, the average cost of a unit produced in a month is given by the formula:

`C=(f+n\cdot b)/(n)`

For f = $11,500, b = $75 and C =$100, we have:

`\begin{gathered} 100=(11500+75n)/(n) \\ 100n=11500+75n \\ 100n-75n=11500 \\ 25n=11500 \\ n=(11500)/(25)=460\text{ units} \end{gathered}`