Question

Parker is in the business of manufacturing phones. He must pay a daily fixed cost to rent the building and equipment, and also pays 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?

Answer 1

9514 1404 393

Answer:

  400; building and equipment fixed cost

Step-by-step explanation:

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.