Question

A company manufactures Handband, a wireless activity tracker. There are initial start up costs involved. Additionally, the company spends a certain amount of money to manufacture each Handband. The cost of manufacturing h Handbands is given by the function, C(h) = 21h + 15000
Which of the following statements are true? Check all that apply.

Answer 1

Answer:

1. 21 represents the cost of manufacturing one handband.

3. The initial start up cost is $15000.

5. The company spends $57000 to manufacture 2000 handbands.

Step-by-step explanation:

We are given the cost function for manufacturing 'h' amount of handbands and it is provided that there was initial start up costs involved.

Now, as the cost function is given by, C(h) = 21h + 15000.

We can see that the initial start up cost is $15000.

As, 'h' is the number of handbands being made. So, 21h in C(h) is the cost of manufacturing 'h' handbands.

Therefore, 21 is the cost of manufacturing one handband.

Since, C(h) = 21h + 15000.

Substituting h = 2000, we get,

C(2000) = 21×2000 + 15000.

i.e. C(2000) = 42000 + 15000.

i.e. C(2000) = 57000.

The company spends $57000 to manufacture 2000 handbands.

Since, we are provided with only cost function, we can not talk about the profit.

Hence, option 1, 3 and 5 are correct.