Let f be the montlhly cost for the company facilities, b the base cost for each unit produced and n the total number of units produced in a month.
Then, the average cost of a unit produced in a month is given by the formula:
[tex]C=\frac{f+n\cdot b}{n}[/tex]
For f = $11,500, b = $75 and C =$100, we have:
[tex]\begin{gathered} 100=\frac{11500+75n}{n} \\ 100n=11500+75n \\ 100n-75n=11500 \\ 25n=11500 \\ n=\frac{11500}{25}=460\text{ units} \end{gathered}[/tex]
