Question

A certain electronics manufacturer found that the average cost C to produce x DVD/Blu- ray players can be found using the equation C = 0.04 x 2 − 5 x + 900 . What is the minimum average cost per machine and how many DVD/Blu-ray players should be built in order to acheive that minimum?

The minimum average cost is ?
The number of DVD/Blu-ray players that should be build to acheive the minimum is?

Answer 1

Minimum average cost = 743.75

Number of dvds to achieve the cost = 62.5

Explanation:

Given the cost equation

C = 0.04x² − 5x + 900

To Obtian the minimum average cost ;

Find dc/dx = 0

Diffentiate cost, c it ith respect to x

dc/dx = 2(0.04x) - 5

dc/dx = 0.08x - 5 = 0

0.08x = 5

x = 5 / 0.08

x = 62.5

Substitute the value of x into C to obtain the minimum average cost

C = 0.04(62.5)² - 5(62.5) + 900

C = 743.75