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The table shows the marginal cost for a company's product at various production levels Marginal cost Marginal cost Units (S/unit) Units ($/unit) 0 3.27 1000
The table shows the marginal cost for a company's product at various production levels Marginal cost Marginal cost Units (S/unit) Units ($/unit) 0 3.27 1000 2.86 20002.77 3000 2.72 4000 2.58 2.44 6000 2.29 70002.18 80002.17 000 2.19 00002.23 11,0002.32 12,0002.65 283 S000 13,0002 (a) Estimate the cost (not including fixed costs) to produce the first 12,000 units by considering batches of 2000 units. Use the initial marginal cost for each batch in calculations (b) yse batches of 1000 units and the ending marginal cost for each batch to estimate the cost of raising the production level from 4000 to 11,000 units
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