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It costs a manufacturer X dollars per component to make the first 3,000 components.
All subsequent components cost one quarter of X each. When X = $2.70 How much will it cost to manufacture 4,000 components?
Answer: B
Explanation: The first 3000 components are $2.70 each which gives $8,100. The 1000 subsequent components cost $0.67 each which gives $670. Therefore the run of 4000 components will cost $8,770.
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