The variable costs associated with a certain process are $0.65 per item. The fixed costs per day have been calculated as $200 with special costs estimated as $0.02X^2, where ‘X' is the size of the production run (that is, number of items produced). Therefore, the total cost function for the production of x items is: TC= 200-0.65x-0.02x^2
a. Calculate the size of the daily run that will minimize cost per item?
b. Find the cost of a day's production for a run that minimize cost per item?