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Write one or two sentences to describe the cost function for the Wichita factory. (5 points)

Write the piecewise function for the cost per unit for production of units in the Wichita factory. That is, state the function , where is the number of units produced. (10 points)






What is the cost per unit for 35,000 units? (5 points)

According to the graph, if only one unit was produced, the cost per unit would be $1.00. In reality, the company would not call in its worker and start up the equipment to produce one unit. What safeguard do you think that many manufacturers use to avoid this type of problem? (5 points)

Of the following three statements, choose the best option and write a viable argument showing how it is reflected by the Cost Function for Wichita’s factory. (10 points)

___ The electricity contract with the utility company is structured so that higher daily energy usage is charged at a lower rate.
___ The plant’s production processes are performed primarily by robots that are able to work longer hours, when needed, at no additional cost.
___ Overtime wages were required to produce at levels above 25,000 units.

Write one or two sentences to describe the cost function for the Wichita factory 5 points Write the piecewise function for the cost per unit for production of u class=

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profantoniofonte

Answer:

1)The cost of producing 25,000 units is $1. From 25,001 units to 35,000 units the cost lowers to $0.80.

2)[tex]f(x)=\left\{\begin{matrix} & \right.\$ 1, \right.for \, 1\leqslant x<25,000\\ & \$0.80,\, for\, 25,000<x\leq 35,000 \end{matrix}\\[/tex]

3) The cost is $0.80

4) The company should calculate the marginal cost and make adjustments

5) ___ The plant’s production processes are performed primarily by robots that are able to work longer hours, when needed, at no additional cost.

Step-by-step explanation:

1) The cost for the Wichita Factory is given by the graph of this piecewise function.

The cost of producing 25,000 units is $1. From 25,001 units to 35,000 units the cost lowers to $0.80.

2) [tex]f(x)=\left\{\begin{matrix} & \right.\$ 1, \right.for \, 1\leqslant x<25,000\\ & \$0.80,\, for\, 25,000<x\leq 35,000 \end{matrix}\\[/tex]

Where x, the Domain is the units and the Range is the cost per unit.

3) Since the cost per unit for 35,000 units fits for the 2nd situation.

[tex]f(x)=0.80\, for \, 25,000<x\leq 35,000[/tex]

The cost is $0.80

4) The company would calculate the marginal cost then know it and adjust its price and to a viable product, and maximize its production.

5)

___ The plant’s production processes are performed primarily by robots that are able to work longer hours, when needed, at no additional cost.

Since there are no additional costs at longer hours, this is one of the reasons why the cost decreases at productions higher than 25,000 units.

rezwanayasmin12

Answer:

Part (a)

We have two separate constant cost functions that's all rolled into one.

If , then we go with the horizontal line on the left. The cost is constant at 1 dollar per unit.

If instead , then the cost is $0.80 or 80 cents per unit, which is visually shown by the horizontal line on the right.

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Part (b)

The answer is

this is basically the same as saying C(x) = 1.00 if x is 25,000 or smaller, OR C(x) = 0.80 if x is between 25,000 and 35,000 where we exclude the left endpoint but include the right endpoint.

In short, C(x) has a split identity. It's either equal to 1.00 or it's equal to 0.80 depending on what x is.

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Part (c)

When x = 35000, we're going to focus on the second piece of the piecewise function. Since the cost is constant here, the cost is 80 cents per unit.

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Part (d)

The company would most likely put a rule in that there has to be some minimum. For instance, they might say that the minimum is 10,000 units and the factory cannot produce anything less than this. This is to ensure that they are able to make money since firing up all those machines and paying the workers costs a lot of money.

The managers would have a pretty good idea of where the break-even point is (either past company data, other consulting data, or theoretical values), and that break-even point is most likely where the production minimums are set. Of course, the managers may encourage workers to exceed the production minimums so that the profit isn't small.

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Part (e)

I'm not entirely sure about this one, but I think the statement "The electricity contract with the utility company is structured so that higher daily energy usage is charged at a lower rate" makes the most sense in this case.

The electric company likely charges a flat rate for energy used. The more energy used would lead to a bulk discount of sorts, and that would lead to a lower rate once you exceed 25,000 units produced. The cost per kilowatt is lower, but overall the electric company is pulling in more money from the factory.

Step-by-step explanation:

Somebody else did it. it helped me. Sharing here in case someone needs it.

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