# 1 what is your predicted cost of a production run of 80 000 capacitors 2 if each run of 80 000 capacitors is sold to the aerospace company for 120 000 what will be the end of the year profit to capital capacitors if the nominal interest rate is 15

The company you work for, Capital Capacitors, makes a specialized capacitor. Cost data from six different sized production runs has been collected. The cost of each run is comprised of energy, materials, manpower and inventory costs.

Total Cost – Number of Capacitors in Run
\$60,000 50,000
\$64,300 54,000
\$68,900 58,000
\$74,200 63,000
\$84,300 72,000
\$83,100 71,000
Capital Capacitors will be producing 80,000 capacitors a month for the next year as part of a contract with a local aerospace company.

1. What is your predicted cost of a production run of 80,000 capacitors?

2. If each run of 80,000 capacitors is sold to the aerospace company for \$120,000, what will be the end-of-the-year profit to Capital Capacitors if the nominal interest rate is 15% per year, compounded monthly?