The minimum unit cost is $59,765.50.
Explanation:
- C(x) = 0.5x² - 320x + 60,085 where C is the unit cost and x is the number of cars made. Depending on the value of x, C also varies. The higher the value of x, the higher the value of C will be.
- To calculate the minimum unit cost, we must calculate C(x) when x is of minimum value. The minimum value of x will be 1. So we substitute x = 1 in the given equation C(x) to calculate the minimum unit cost.
- C(x) = 0.5x² - 320x + 60,085, so when x = 1, C(1) = 0.5 (1²) - 320 (1) + 60,085 = 0.5 - 320 + 60,085 = 60,085.50 - 320 = $59,765.50.
