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Step-by-step explanation:
<u>Mathematical Modeling</u>
To model a real-life situation, a mathematical model can be constructed in such a way it accurately represents the variables measured in the system.
This problem requires to build a model for the yearly cost of a small and successful business.
The first data is the fixed monthly cost or the money the owner must pay regardless of the number of employees he hires. This cost includes shipping supplies and products for $2,000. To operate for a full year, the fixed cost is 12*$2,000=$24,000.
The other component of the cost function is the variable cost of x employees. Given each employee costs $1,600 each month, having x employees cost 1,600x each month. For a full year, the variable cost will be
12*1,600x=19,200x.
We finally form the total cost function: