Ace Electronics
Word problem I need help solving?
It costs Ace Electronics Company $1900 to manufacture 10 VCRs and $2200 to manufacture 16 VCRs. At this rate, what would be the cost of manufacturing 25 VCRs?
I’d say $2650, I think it is worked on a base and varying cost, where the base cost is $1400 and the cost of production for each product is $50, it makes sense as the increase of 6 products only added $300, no amount of bulk buying could decrease the cost that much.
So $1400 + (25*$50 = $1250) = $2650
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