Question 79335: 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.
Can someone please help me understand this problem???? Pleeeease, Thank You
Answer by tutorcecilia(2152)   (Show Source):
You can put this solution on YOUR website! C=mx + b
b=fixed cost=40
m= variable cost=10
Plug-in the values:
C=10x+40
This means that the fixed cost will always be $40.00 regardless of the number of items (x). The fixed cost is the overhead or the standing cost of doing business. It won't change.
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The varied cost will be $10 times the number of items. So if you have 2 items, multiply it by $10 ($10 x 2=$20), plus the fixed-cost of $40.00 = $20+$40=$60
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Or if x=2, than
C=10x+40
C=10(2)+40
C=20+40
C=$60
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