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Problem - The average cost/unit for the production of a particular component at a manufacturing plant varies with the number of units produced in each batch. The data are given below.
Number of units produced
Cost/Unit
0-49
37.72
50-100
25.02
Suppose the selling price of each unit is $35.
a. Build a model to calculate the profit of the manufacturing industry if the demand is 20.
b. Construct a data table that shows the profit per unit as a function of demand if the demand ranges between 20 units through 80 units in increments of 10 units.
C. Use a two-way data table to show how the profit changes as a function of demand and the selling price of the product. Vary the demand from 20 units to 80 units in increments of 10 units and selling price from $30 to $40 in increments of $2.
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