Posted by **liz** on Friday, February 19, 2010 at 5:02am.

The fixed costs of oreparting a business are the costs include rent, fixed salaries, and costs of buying machinery. The variable costs of operating a business are the costs that change with the level of ouput. Variable costs include raw materials, hourly wages, and electricity. Suppose that a manufacturer of jeans has fixed costs of $500 and variable costs of $8 for ech pair of jeans manufactured. Write a linear equation that relates the cost C, in dollars of manufacuting the jeans to the number x of pairs of jeans manufactured. What is the cost of manufacturing 400 pairs of jeans? 740 pairs?

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