The variable cost for the production of a calculator is $\$$ 14.25 and the initial investment is $\$$ 550,000. Use differentials to approximate the change in the cost C for a one-unit increase in production when $x = 80,000$ , where x is the number of units produced.
A)1140000.00 dollars
B)15.25 dollars
C)1141000.00 dollars
D)14.25 dollars
E)24.25 dollars

Question

Quizplus · Accepted Answer

The change in cost, $dC$, for a one-unit increase in production is approximated by the variable cost per unit, which is $\$$14.25. The initial investment does not affect the incremental cost of producing one additional unit.

The Variable Cost for the Production of a Calculator Is $\$$