ETB plans to manufacture a slim bamboo hard case for the Apple iPad, which will be sold for $ 65. ETB estimates that it can produce and sell between 3,000 and 5,000 bamboo cases a month. The following data summarize ETB's cost structure at various output (sales) levels:

Required:
a. What monthly production (sales) level minimizes the average cost of the bamboo iPad case?
b. How many bamboo iPad cases should ETB produce monthly?

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Production (units) 3,000 350500 5,000 Variable manufacturing cost $36,000 $35.000 $36,000 $60.000 Fixed manufacturing cost Variable selling & admin cost S26,100 $28,000 31,500 $35,000 Fixed selling and admin cost $,000 $40,000 $40,000 $40,000 $60,000 $60,000 $60,000 $60,000