SOLUTION: aBusiness and finance. The cost of producing a number of items x is given by C=mx+b, in which b is the fixed cost and m is the variable cost (the cost of producing one more item).
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-> SOLUTION: aBusiness and finance. The cost of producing a number of items x is given by C=mx+b, in which b is the fixed cost and m is the variable cost (the cost of producing one more item).
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Question 32859: aBusiness and finance. The cost of producing a number of items x is given by C=mx+b, in which b is the fixed cost and m is the variable cost (the cost of producing one more item).
a) If the fixed cost is $40 and the variable cost is $10, write the cost equation.
b) Graph the cost equation.
c) The revenue generated from the sale of items is given by R=50x. Graph the revenue equation on the same set of axes as the cost equation.
d) How many items must be produced for the revenue to equal the cost (the break-even point)?
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