Parker is in the business of manufacturing phones. He must pay a daily fixed cost to rent the building and equipment, and also p
ays a cost per phone produced for materials and labor. The equation C=175p+400 can be used to determine the total cost, in dollars, of producing pp phones in a given day. What is the y-intercept of the equation and what is its interpretation in the context of the problem?
The cost equation has two terms. The constant term (400) is the daily fixed cost of building and equipment. The variable term (175p) represents the cost of producing p phones.
The y-intercept is 400. It is the daily fixed cost of the building and equipment.
