Question

A company is creating a new product that requires a one-time setup cost of $150 and a cost per item of $25. The company wants to find an equation to determine the average cost (C) per item produced (x).

a) C = 150x - 25
b) C = 25x + 150
c) C = 150 + 25x
d) C = 25 + 150x

Answer 1

The equation to determine the average cost per item produced is C = 150 + 25x.

Step-by-step explanation:

To find the equation for the average cost per item produced, we need to consider the fixed setup cost and the cost per item. The fixed setup cost of $150 is constant regardless of the number of items produced, so we add this to the equation. The cost per item is $25, which increases as more items are produced, so we multiply this by the number of items (x) produced. Therefore, the equation to determine the average cost (C) per item produced (x) is: C = 150 + 25x.