SOLUTION: Write a cost function for the problem. Assume that the relationship is linear.
Fixed cost, $ 100; 5 items cost $ 1790 to produce
A)
C(x) = 676x + 100
B)
C(
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-> SOLUTION: Write a cost function for the problem. Assume that the relationship is linear.
Fixed cost, $ 100; 5 items cost $ 1790 to produce
A)
C(x) = 676x + 100
B)
C(
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You can put this solution on YOUR website! Since the fixed cost is $100, we know that if we make zero items (x = 0), then the cost is $100. Hence, only one of A or B is correct. If we replace x = 5 into both cost functions, we see that answer choice B satisfies C(5) = 1790. So choice B is correct.