A large technology company is planning to start a new techni

A large technology company is planning to start a new technical support program. The fixed monthly cost of the program will be $22,000 and it will cost $150 per user. This includes all equipment, 24-hour technical support, and bi-weekly workshops.

a. Write the cost function, C, of running the program for x number of people.

b. Write the average cost function, C, of running the program for x number of people.

c. Find and interpret the following

i. C(100)

ii. C(2000)

d. What is the horizontal asymptote for the graph of the average cost function, C?

Solution

a) C(x)= 22000+150*x

b) A(x) = C(x)/x = 22000/x +150

c) C(100) = 22000+15000 = 37000

   C(2000) = 22000+2000*150 = 22000+300000=322000

d) Here horizontal asymptotes is y= 150