A company estimates that the marginal cost (in dollars per item) of producing x items is 1.61 - 0.002x. If the cost of producing one item is $556, find the cost of producing 100 items. (Round your answer to two decimal places.)

Answer: The answer is $715.19

Explanation:

The cost of producing the first item is given as $556.

Therefore, the cost of producing 100 items or 99 additional items is roughly the same as:

Take the marginal cost of 1 item = 1.61 - 0.002 (1) = 1.608.

Multiply 1.608 by 99, we get:

=> 159.192.

Adding this to the cost of producing the first item, we have:

=> 159.192 + 556

= $715.192.

Therefore, the cost of producing 100 items is approximately $715.19