Question 1190204
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x = number of units produced
y = total cost in thousands of dollars


eg: y = 5 means the total cost is 5000 dollars


Cost equations:
Location A: y = 15x + 160
Location B: y = 14x + 360
The general template is
total cost = (variable cost)*x + (fixed cost)


Since we want the two costs to be the same, we're dealing with the same y value.
Apply substitution and solve for x.


y = 14x+360
15x+160 = 14x+360
15x-14x = 360-160
<font color=red>x = 200</font>
You need to produce <font color=red>200 units</font> to get the same cost for each location.


Location A:
y = 15x+160
y = 15*200+160
y = 3,000+160
y = 3,160
Location B:
y = 14x+360
y = 14*200+360
y = 2,800+360
y = 3,160
Getting the same result for y helps confirm the correct x value.


Remember that y is the total cost in thousands. So we multiply that y value by 1000 to get 1000*3160 = 3,160,000


Each location will have a total cost of $3,160,000 


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Answer: <font color=red>200 units</font>
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