Question

A small company is creating a new product to sell to buyers. They have estimated that it will cost them $25 to produce each item and they will have start-up costs of $116000. This leads to the following expression, which gives the total cost, in dollars, to produce q of these new products: 25q+116000 Use this expression to predict how much it will cost them to produce 8900 items.

Answer 1

`Cost = 338500`

Explanation:

Given

Startup = $116000

Cost per item = $25

Equation: 25q + 116000

Required

Determine the cost of producing 8900 items

The question implies that q = 8900

To solve further, we have to substitute 8900 for q in the given equation

Equation = 25q + 116000 becomes

`Cost = 25 * 8900 + 116000`

`Cost = 222500 + 116000`

`Cost = 338500`

Hence, the cost of producing 8900 items is $338500