Question

All you have to do is write the function!

A software CD can be manufactured for $0.10 each. The development cost to produce the CD is $500,000. The first 200 CDs were used by testers to test the functionality of the software and were not sold.

Write a function, f, for the average cost, in dollars, of a saleable software CD where x is the number of saleable software CDs.

Answer 1

The function that represents the average cost in dollars of saleable software CD is given as follows;

f(x) = 500,020/x + 0.10

Explanation:

The given parameters are;

The cost of manufacture of each software CD = $0.10

The development cost to produce the CD = $500,000

The number of CDs that are not sold = The first 200 CDs

The total cost of production. 'C', of the the CD is given as follows;

C = $500,000 + $0.10×200 = $500,020

The function, 'f' for the average cost in dollars of a saleable software CD where 'x' is the number of saleable software CDs is given as follows;

f(x) = (C + 0.10·x)/x = C/x + 0.10

∴ f(x) = 500,020/x + 0.10.