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Calculate tiered cost and break-even

MathWorksSoftware Engineer · Online Assessment

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This question evaluates the ability to model tiered piecewise cost functions, compute total and average unit costs, and perform break-even analysis using basic algebra and arithmetic.

A vendor charges a fixed setup fee of $500 per order. The unit price is $12 for the first 1,000 units and $9 for each additional unit beyond 1,000. Shipping costs $0.80 per unit for the first 2,000 units and $0.50 for each unit thereafter. (a) Write a formula for total cost as a function of quantity q. (b) Compute total and average cost per unit for q = 1,600 and q = 3,200. (c) If your resale price is $15 per unit, what is the break-even quantity? Show steps.