Cost function for total cost of production

Altawfik Corporation is estimating the cost function for total cost of production of product A using the two points method.The data collected for the past year is as following:

Number of unitsTotal

Quarterproduced Costs

14,000$1,000

25,4001,280

37,0001,600

49,0002,000

Using the two points methods, choose two points with which you estimate the cost function.

Sample Solution