Using existing plant and equipment, Priceless Moments Figurines can be manufactured using plastic, clay, or any combination of these materials. A figurine can be manufactured by F = 2P + 5C, where P is pounds of plastic and C is pounds of clay. Plastic costs $5 per pound and clay costs $2 per pound. What would be the lowest cost of producing 60,000 figurines?

Question

Quizplus · Accepted Answer

To find the cost of producing 60,000 figurines, we need to minimize the cost function F = 2P + 5C.

Let x be the number of figurines produced. Then, we can write:

P = 0.5x      (since 1 figurine requires 2 pounds of plastic)
C = 0.2x      (since 1 figurine requires 5 pounds of clay)

Substituting these values in the cost function, we get:

F = 2(0.5x) + 5(0.2x) = 1x + x = 2x

The total cost will be the product of the cost per figurine and the number of figurines:

Cost = 2x * $0.02/pound = $0.04x

For x = 60,000, the total cost will be:

Cost = $0.04(60,000) = $2,400

Therefore, the lowest cost of producing 60,000 figurines is $2,400, which corresponds to option B.

Using Existing Plant and Equipment, Priceless Moments Figurines Can Be