[SCHEMES PT1] [200points total]
1. Factory in Wichita
The cost per unit for Wichita’s factory is graphed as a piecewise function over the domain [0, 35000].
a) Write one or two sentences to describe the cost function for the Wichita factory.
b) Write the piecewise function for the cost per unit for production of units in the Wichita factory.
That is, state the function (), where is the number of units produced.
c) What is the cost per unit for 35,000 units?
Student Guide (continued)

d) According to the graph, if only one unit was produced, the cost per unit would be $1.00. In reality,
the company would not call in its worker and start up the equipment to produce one unit. What
safeguard do you think that many manufacturers use to avoid this type of problem?
e) Of the following three statements, choose the best option and write a viable argument showing
how it is reflected by the Cost Function for Wichita’s factory.
___ The electricity contract with the utility company is structured so that higher daily
energy usage is charged at a lower rate.
___ The plant’s production processes are performed primarily by robots that are able
to work longer hours, when needed, at no additional cost.
___ Overtime wages were required to produce at levels above 25,000 units.