This can be solve by using linear equation. Let y be the cost to produced and x be the number of cd’s. so let point 1 be ( 1000, 399) and point 2 to be ( 15, 54.25). then solve the slope
M = (y1 – y2)/ (x1 – x2) = ( 399 -54.25)/ ( 1000 – 15) = 0.35 cost per cd
Y = mx + b
399 = 0.35(1000) + b
B = 49
Y = 0.35x +49 is the equation