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sunshinekisses
sunshinekisses
17.01.2022 • 
Mathematics

Replacement time. An office copier has an initial price of $2,500. A service contract costs $200 for the first year and increases $50 per year thereafter. It can be shown that the total cost of the copier after n years is given by C(n) = 2,500 + 175n + 25n.

a. Find the average cost AC per year for n years.

b. Graph AC on a graphic calculator for 2
c. When is the average cost per year at a minimum, and what is the minimum average annual cost? [Hint: Refer to the graph in part (b)] The time when the average cost is minimum is frequently referred to as the replacement time for the piece of equipment.

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