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How many boxes of candy should the candy manufacturer make to minimize the cost of each box?

User Ian Brown
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Final answer:

The candy manufacturer should make the number of boxes that minimizes the cost per box.

Step-by-step explanation:

In order to minimize the cost of each box of candy, we need to determine the number of boxes that should be made. To do this, we need to consider the relationship between cost and quantity.

In general, the more boxes of candy that are produced, the lower the cost per box. This is because the fixed costs, such as production equipment and labor, are spread out over a larger quantity. However, there is also a variable cost associated with each box produced. This cost includes the cost of raw materials, packaging, and distribution.

To find the optimal number of boxes, we need to find the quantity at which the fixed costs and variable costs are balanced. This point is often referred to as the minimum average cost or the break-even point.

Once the break-even point is determined, the candy manufacturer should produce that many boxes of candy in order to minimize the cost per box.

User RickDT
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