Answer:
Step-by-step explanation:
The manufacturing of any product mainly consists of two types
1) Fixed 2) Variable
Fixed costs remain constant whatever the units be produced
Variable costs directly vary with number of units produced
Hence we get here
Total cost = Fixed cost+variable cost =[tex]2400+25.50x[/tex]
where x = no of units produced
Since cost is to be below 3420 dollars,
[tex]2400+25.50x<3420\\25.5x<1020\\\\x<\frac{1020}{25.5} =\frac{68}{1.7} \\x<40 units.[/tex]
