Shakey Company, a producer of fine quality cuckoo clocks, produced 4,500 cuckoo clocks at a cost of $1,150,000 in November. In December the company produced 3,000 cuckoo clocks at a cost of $925,000.
Required:
a. Using these two data points, determine a cost function for Shakey Company.
b. Determine the expected cost if Shakey Company produces 3,500 units.

Question

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The Answer of Shakey Company, a producer of fine quality cuckoo clocks, produced 4,500 cuckoo clocks at a cost of $1,150,000 in November. In December the company produced 3,000 cuckoo clocks at a cost of $925,000.
Required:
a. Using these two data points, determine a cost function for Shakey Company.
b. Determine the expected cost if Shakey Company produces 3,500 units.

Shakey Company, a Producer of Fine Quality Cuckoo Clocks, Produced