Average cost of manufacturing an item: The cost “C” to
manufacture an item depends on the relatively fixed costs
“K” for remaining in business (utilities, maintenance,
transportation, etc.) and the actual cost “c” of
manufacturing the item (labor and materials). For x items
the cost is The average cost
“A” of manufacturing an item is then
73. Manufacturing water heaters: A company that
manufactures water heaters finds their fixed costs
are normally $50,000 per month, while the cost to
manufacture each heater is $125. Due to factory
size and the current equipment, the company can
produce a maximum of 5000 water heaters per
month during a good month.
a. Use the average cost function to find the
average cost if 500 water heaters are
manufactured each month. What is the average
cost if 1000 heaters are made?
b. What level of production will bring the average
cost down to $150 per water heater?
c. If the average cost is currently $137.50, how
many water heaters are being produced that
month?
d. What’s the significance of the horizontal
asymptote for the average cost function (what
does it mean in this context)? Will the
company ever break the $130 average cost
level? Why or why not?
74. Producing biodegradable disposable diapers:
An enterprising company has finally developed a
better disposable diaper that is biodegradable. The
brand becomes wildly popular and production is
soaring. The fixed cost of production is $20,000
per month, while the cost of manufacturing is
$6.00 per case (48 diapers). Even while working
three shifts around-the-clock, the maximum
production level is 16,000 cases per month. The
company figures it will be profitable if it can bring
costs down to an average of $7 per case.
a. Use the average cost function to find the
average cost if 2000 cases are produced each
month. What is the average cost if 4000 cases
are made?
b. What level of production will bring the average
cost down to $8 per case?
c. If the average cost is currently $10 per case,
how many cases are being produced?
d. What’s the significance of the horizontal
asymptote for the average cost function (what
does it mean in this context)? Will the
company ever reach its goal of $7/case at its
maximum production? What level of
production would help them meet their goal?
A1x2
C1x2
x
.
C1x2 K cx.
Test averages and grade point
averages: To calculate a test
average we sum all test points P
and divide by the number of
tests N: . To compute the
score or scores needed on future tests to raise the average
grade to a desired grade G, we add the number of additional
tests n to the denominator, and the number of additional
tests times the projected grade g on each test to the
numerator:
. The result is a rational function with
some “eye-opening” results.
75. Computing an average grade: After four tests,
Bobby Lou’s test average was an 84.
[Hint: ]
a. Assume that she gets a 95 on all remaining
tests Graph the resulting function on
a calculator using the window and
. Use the calculator to
determine how many tests are required to lift
her grade to a 90 under these conditions.
b. At some colleges, the range for an “A” grade is
93–100. How many tests would Bobby Lou
have to score a 95 on, to raise her average to
higher than 93? Were you surprised?
c. Describe the significance of the horizontal
asymptote of the average grade function. Is a
test average of 95 possible for her under these
conditions?
d. Assume now that Bobby Lou scores 100 on all
remaining tests Approximately how
many more tests are required to lift her grade
average to higher than 93?
76. Computing a GPA: At most colleges,
grade points, , , and . After
taking 56 credit hours, Aurelio’s GPA is 2.5.
[Hint: In the formula given, .]
a. Assume Aurelio is determined to get A’s
(4 grade points or for all remaining
credit hours. Graph the resulting function on a
calculator using the window and
Use the calculator to determine
the number of credit hours required to lift his
GPA to over 2.75 under these conditions.
b. At some colleges, scholarship money is
available only to students with a 3.0 average or
higher. How many (perfect 4.0) credit hours
would Aurelio have to earn, to raise his GPA to
3.0 or higher? Were you surprised?
c. Describe the significance of the horizontal
asymptote of the GPA function. Is a GPA of
4.0 possible for him under these conditions?
G1n2 僆 32, 44.
n 僆 30, 604
g 42,
P 2.51562 140
D S 1C S 2B S 3
A S 4
1g 1002.
G1n2 僆 380 to 1004
n 僆 30, 204
1g 952.
P 41842 336.
G1n2
P ng
N n
P
N
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College Algebra G&M—
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