Posted by Fred on .
Suppose your tile company spends $ 195 each month, regardless of how many tiles are purchased as supplies. How much do you spend if you purchase 1000 tiles this month, taking into account this fixed cost?
c. What is a possible reason for this fixed cost?
d. Find the cost equation for the tile. Let x represent the quantity of tiles purchased. Set m equal to the cost of each tile. Set b as the fixed cost. Write your answer in the form C = mx + b. (Do not substitute a value for a x. We need x as a variable.)
e. Use your equation from part c and substitute x = 2000. What does your answer represent ?
f. Why is the cost of each tile multiplied by the quantity of tiles purchased? Why isn't the fixed cost multiplied by x?