SOLUTION: FIXED COST IS $200; 60 ITEMS COST $1,400 TO PRODUCE. The linear cost function is?

Question 1146652: FIXED COST IS $200; 60 ITEMS COST $1,400 TO PRODUCE. The linear cost function is?
Answer by greenestamps(13200) (Show Source): You can put this solution on YOUR website!

y = mx+b

b is the y-intercept (in this problem, the fixed cost; the cost of production before any items are produced)
m is the slope (rate of change; in this problem, how much the production cost increases for each item produced)

The fixed cost is given to you.

Calculate the rate of change using the given information that the cost of producing 60 items, including the fixed cost, is $1400:
total cost of producing 60 items: $1400
fixed cost: $200
production cost for 60 items: $1400-$200 = $1200
per-item cost of production: I leave that little bit to you

Plug the m and b values into the basic equation.

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