SOLUTION: A bricks manufacturer has daily costs $180 and a variable cost of $1.50 per brick. Determine how many bricks the company needs to make per day to meet its goal of an average cost o
Question 168226: A bricks manufacturer has daily costs $180 and a variable cost of $1.50 per brick. Determine how many bricks the company needs to make per day to meet its goal of an average cost of $2.00 per brick. Note that the total cost can also be calculated by multiplying the average cost per brick by the number of bricks produced Answer by 303795(602) (Show Source):
You can put this solution on YOUR website! Probably not the way in which your teacher wants you to solve it but it still works.
The average cost of a brisk will be $2.00. If the variable cost is $1.50 then each brick sold will use up $0.50 of the fixed costs.
If the fixed costs are $180.00 and each brick sold uses up $0.50 of that cost, then the number of bricks will be $180.00 / $0.50 = 360 bricks
So the cost of making the 360 bricks will be (360 x $1.50) + $180.00 = $720.00 which gives an average cost of $2.00 per brick.
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