Marginal cost per bundle


A company that manufactures and sells flooring has fixed costs of $3000 to run an order for customer. An order of 1500 bundles will cost $24,750. The marginal cost per bundle is constant, regardless of size of the order.

a) Find out the total cost to produce 1000 bundles, as well as the cost to produce just the 1000th bundle

b) For orders larger than 1500 bundles, extra equipment is needed, so the cost to produce the bundles goes up by $800. Given this, suppose it costs $35,700 to produce an order. How many bundles were ordered? Please show your work

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Mathematics: Marginal cost per bundle
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