Answer:
$40
It means that when an infinite number of pages are printed in a month then the fixed cost will be negligible.
Step-by-step explanation:
Given that:
Monthly overhead costs in rent = $1900
Costs in electricity = $450
Costs for phone service = $80
Costs for advertising and marketing = $230
Printing cost per thousand pages = $40
If number of pages printed are [tex]x[/tex] thousand then cost of printing for [tex]x[/tex] thousand pages = $40[tex]x[/tex]
Average cost to print [tex]x[/tex] thousand pages can be given as:
(Total fixed cost + Total cost of printing [tex]x[/tex] thousand pages) divided by [tex]x[/tex]
[tex]\dfrac{2660+40x}{x}[/tex]
Now, it is given that an infinite number of pages are printed in a month, and we have to find the value that average cost would approach to.
[tex]\lim_{x \to \infty} (\dfrac{2660+40x}{x})[/tex]
Let us solve the above limits.
[tex]\Rightarrow \lim_{x \to \infty} (\dfrac{2660}x+\dfrac{40x}{x})\\\Rightarrow \lim_{x \to \infty} (\dfrac{2660}x)+40\\\Rightarrow 40+\lim_{x \to \infty} (\dfrac{2660}x)[/tex]
When
[tex]x\rightarrow \infty\Rightarrow \frac{2660}{x} \rightarrow 0[/tex]
Putting the value in the limits, we get:
Average cost per thousand pages month would approach to [tex]\rightarrow \$40[/tex]
It means that when an infinite number of pages are printed in a month then the fixed cost will be negligible.
