Question

A company manufactures and sells handbags. It costs $20.00 to produce one handbag. The company's monthly operation cost is approximately $150,000.00. The average cost, in dollars, of one handbag can be modeled by this function: C(x) = (20x+ 150000)/x where x is the number of handbags manufactured. Use graphing technology to solve the following problems. Round your answers to whole numbers if needed.

1) If the company manufactured 3500 handbags in a certain month, what was the average cost of one handbag in that month?

Answer 1

The average cost of one handbag in that month was $220.

Step-by-step explanation:

To find the average cost of one handbag, we can use the average cost function C(x) = (20x + 150000) / x, where x is the number of handbags manufactured. For this problem, x = 3500. Plugging in x = 3500 into the function, we get C(3500) = (20 * 3500 + 150000) / 3500 = 220. Therefore, the average cost of one handbag in that month was $220.