Question

Your company has a fixed monthly operating cost of $4173 (rent, fixed utilities, etc.) on top of the $5.13 it costs you to make each t-shirt. Write a linear equation expressing your total monthly expenditures/costs as a function of price per t-shirt. Again, please be explicit about what your chosen variables represent

Answer 1

Answer:

Y = $4,173 + ($5.13)X

Explanation:

A fixed monthly operating cost of $4,173 is a monthly cost that will not change no matter the number or unit of t-shirt produced, while $5.13 is the variable costs of making each t-shirt. This can be presented in a linear equation as follows:

Y = a + bX .............................. (1)

Where,

Y = Total monthly cost of producing shirts

a = fixed cost = $4,173

b = variable cost of each shirt = $5.13

X = number of shirts produced

Using the values already given, equation (1) can be rewritten as follows:

Y = $4,173 + ($5.13)X .............................. (2)

Equation (2) is the required linear equation.