e total cost of manu ation p(x) of C(x) a e this with the exact n(x) about n(x 20

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2DQ: Which of the following costs would be classified as variable and which would be classified as fixed,...
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Suppose that the total cost of manufacturing x units of a metal straws is C(x) = 2x² + 6x + 12. Using the
linear approximation p(x) of C(x) about x = 20, approximate the cost of manufacturing 21 units of metal
straws. Compare this with the exact cost of manufacturing 21 units of metal straws.
Using the same p(x) about x = 20, approximate the cost of manufacturing 22 units of metal straws and
compare this with the exact cost. What do you observe about approximations p(21) and p(22) relative to
C(21) and C(22), respectively?
Transcribed Image Text:Suppose that the total cost of manufacturing x units of a metal straws is C(x) = 2x² + 6x + 12. Using the linear approximation p(x) of C(x) about x = 20, approximate the cost of manufacturing 21 units of metal straws. Compare this with the exact cost of manufacturing 21 units of metal straws. Using the same p(x) about x = 20, approximate the cost of manufacturing 22 units of metal straws and compare this with the exact cost. What do you observe about approximations p(21) and p(22) relative to C(21) and C(22), respectively?
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