Question 1187018: To produce a textbook, suppose a publisher spent $110,000 for typesetting and $5.50 per book for printing and binding. The total cost to produce n books can be written as
C = 110,000 + 5.5n
a. Suppose the number of books printed in the first printing is 10,000. What is the total cost?
The total cost is:
b. If the average cost is the total cost divided by the number of books printed, find the average cost of producing 10,000 textbooks.
The average cost for producing 10,000 textbooks is:
c. Find the cost to produce one more textbook when you have already produced 10,000 textbooks. If you have already produced 10,000 textbooks, it’ll cost you “” to produce one more.
Thank you!
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! the total cost formula is:
total cost = 110,000 + 5.5 * n
110,000 is the cost for typesetting.
5.5 is the cost for printing and binding each book.
n is the number of books.
the cost for the typesetting is called the fixed cost.
it's an up front cost that is incurred, regardless of the number of books that are produced.
the cost for each book is called the incremental cost.
it is the additional cost for printing and binding each book that does not include the fixed cost.
the total cost for 10,000 books is 110,000 + 5.5 * 10,000 = 110,000 + 55,000 = 165,000.
the average cost for producing 10,000 books is 165,000 / 10,000 = 16.5 per book.
this average cost includes the fixed cost plus the incremental cost.
the cost to produce one additional book, once you have paid for the typesetting, is 5.5.
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