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Alisha Incorporated manufactures medical stents for use in heart bypass surgery. Based on past experience, Alisha has found that its total maintenance costs can be represented by the following formula: Maintenance Cost = $2,200,000 + $150X, where X = Number of Heart Stents. Last year, Alisha produced 35,000 stents. Actual maintenance costs for the year were as expected.
Required:
If required, round your answers to the nearest cent.
Problem 1: What is the maintenance cost per unit produced?
Problem 2: What is the fixed maintenance cost per unit?
Problem 3: What is the variable maintenance cost per unit?
Problem 4: Alisha management could improve its cost function to better understand past maintenance costs and predict future maintenance costs by.
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