Ally loves the beach and decides to spend the summer selling various ice cream products on the beach. From her account course, she knows that her total cost is calculated as
Total Cost= Fixed Cost + Various Cost
She estimates that her fixed cost for the summer season is $50 per day. She also knows that each ice cream product costs her $0.75 from her distributor.
a. Write the relationship for the daily cost y in terms of the number of ice cream products sold per day x.
b. What does the y-intercept represent in the context of this problem?
c. What is her cost if she sells 450 ice cream products?
d.What is the slope of the line?
e. What does the slope of the line represent in the context of this problem?
accounting course*
y=50+0.75x
a. The relationship for the daily cost y in terms of the number of ice cream products sold per day x can be written as:
Daily Cost (y) = Fixed Cost + (Various Cost per ice cream product * Number of ice cream products sold per day)
y = $50 + ($0.75 * x)
b. The y-intercept represents the fixed cost component in the context of this problem. In other words, it is the cost that Ally incurs even if she doesn't sell any ice cream products. In this case, the y-intercept is $50, which means that Ally has a fixed cost of $50 per day, regardless of the number of ice cream products she sells.
c. To find her cost if she sells 450 ice cream products, we can substitute x = 450 into the equation:
Daily Cost (y) = $50 + ($0.75 * 450)
y = $50 + $337.50
y = $387.50
Therefore, her cost if she sells 450 ice cream products is $387.50.
d. The slope of the line represents the various cost per ice cream product in the context of this problem. In this case, the slope is $0.75, which means that for each ice cream product sold, Ally incurs a cost of $0.75.
e. The slope of the line represents the rate at which the cost increases for each additional ice cream product sold. In this case, the slope of $0.75 indicates that for every additional ice cream product Ally sells, her cost increases by $0.75.