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21 August, 02:09

A manufacturer of brand A jeans has daily production costs of Upper C equals 0.3 x squared minus 120 x plus 12 comma 585 , where C is the total cost (in dollars) and x is the number of jeans produced. How many jeans should be produced each day in order to minimize costs? What is the minimum daily cost?

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  1. 21 August, 04:41
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    a. 200 jeans should be produced each day in order to minimize costs.

    b. The minimum daily cost is $108,585
  2. 21 August, 04:55
    0
    a. 200 jeans should be produced each day in order to minimize costs.

    b. The minimum daily cost is $108,585

    Explanation:

    a. How many jeans should be produced each day in order to minimize costs?

    Given C = 0.3x^2 - 120x + 120,585 ... (1)

    Cost is minimized when MC = C' = 0

    To obtain MC, equation (1) is differentiate with respect to x as follows:

    dC/dx = MC = C' = 0.6x - 120 = 0 ... (2)

    From equation (2), we can now solve for x follows:

    0.6x - 120 = 0

    0.6x = 120

    x = 120 : 0.6

    x = 200

    Therefore, 200 jeans should be produced each day in order to minimize costs.

    b. What is the minimum daily cost?

    Substitute 200 for x in equation (1) to have:

    C = 0.3 (200^2) - 120 (200) + 120,585

    = 12,000 - 24,000 + 120,585

    C = $108,585

    Therefore, the minimum daily cost is $108,585.
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