a business that manufactures small alarm clocks has weekly fixed costs of $6000. the average cost per clock…

a business that manufactures small alarm clocks has weekly fixed costs of $6000. the average cost per clock for the business to manufacture x clocks is described by $\frac{0.7x + 6000}{x}$. a. find the average cost when x = 100, 1000, and 10,000. b. like all other businesses, the alarm clock manufacturer must make a profit. to do this, each clock must be sold for at least 50¢ more than what it costs to manufacture. due to competition from a larger company, the clocks can be sold for $1.50 each and no more. our small manufacturer can only produce 2000 clocks weekly. does this business have much of a future? explain. (type an integer or a decimal.) b. does this business have much of a future? a. yes, the average cost to produce 2000 alarm clocks is much greater than the selling price of the alarm clocks b. no, the average cost to produce 2000 alarm clocks is much less than the selling price of the alarm clocks

a business that manufactures small alarm clocks has weekly fixed costs of $6000. the average cost per clock for the business to manufacture x clocks is described by $\frac{0.7x + 6000}{x}$. a. find the average cost when x = 100, 1000, and 10,000. b. like all other businesses, the alarm clock manufacturer must make a profit. to do this, each clock must be sold for at least 50¢ more than what it costs to manufacture. due to competition from a larger company, the clocks can be sold for $1.50 each and no more. our small manufacturer can only produce 2000 clocks weekly. does this business have much of a future? explain. (type an integer or a decimal.) b. does this business have much of a future? a. yes, the average cost to produce 2000 alarm clocks is much greater than the selling price of the alarm clocks b. no, the average cost to produce 2000 alarm clocks is much less than the selling price of the alarm clocks

Answer

Explanation:

Step1: Calculate average cost for x = 100

Substitute x = 100 into $\frac{0.7x + 6000}{x}$: $\frac{0.7\times100+6000}{100}=\frac{70 + 6000}{100}=\frac{6070}{100}=60.7$

Step2: Calculate average cost for x = 1000

Substitute x = 1000 into $\frac{0.7x + 6000}{x}$: $\frac{0.7\times1000+6000}{1000}=\frac{700+6000}{1000}=\frac{6700}{1000}=6.7$

Step3: Calculate average cost for x = 10000

Substitute x = 10000 into $\frac{0.7x + 6000}{x}$: $\frac{0.7\times10000+6000}{10000}=\frac{7000 + 6000}{10000}=\frac{13000}{10000}=1.3$

Step4: Analyze business future

Substitute x = 2000 into $\frac{0.7x + 6000}{x}$: $\frac{0.7\times2000+6000}{2000}=\frac{1400+6000}{2000}=\frac{7400}{2000}=3.7$. The selling - price is $1.50$. Since $3.7>1.50$, the average cost to produce 2000 alarm - clocks is much greater than the selling price. So the business has no future.

Answer:

a. When x = 100, the average cost is 60.7; when x = 1000, the average cost is 6.7; when x = 10000, the average cost is 1.3. b. No, the average cost to produce 2000 alarm clocks is much greater than the selling price of the alarm clocks.