Assume that the situation can be expressed as a linear cost function. find the cost function. fixed cost is $300; 80 items cost

Question

2 years ago

13

$2,700 to produce.

1 answer:

insens350 [35] · Answer 1 · 2023-06-20T11:24:36+03:00

Considering the definition of linear equation, the cost function is Cost=300 + 30× number of items produced.

<h3>Linear equation</h3>

A linear equation o line can be expressed in the form y = mx + b

where

x and y are coordinates of a point.
m is the slope.
b is the ordinate to the origin and represents the coordinate of the point where the line crosses the y axis.

<h3>Cost function</h3>

In this case, you know:

The cost function is:

Cost=300 + production cost of each item× number of items produced

Substituting the corresponding values:

2700= 300 + production cost of each item× 80

Solving:

2700 - 300= production cost of each item× 80

2400= production cost of each item× 80

2400÷ 80= production cost of each item

<u><em>30= production cost of each item</em></u>

Finally, the cost function is Cost=300 + 30× number of items produced.

Learn more about equation of a line:

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