A factory produces beach umbrellas. They have a fixed cost they must pay no matter how many umbrellas they produce, and a variable cost they must pay for each umbrella they produce. The cost of producing x umbrellas is modeled by the function C(x)=2.83x+1,350. Identify and interpret the initial value.
The initial value in this context refers to the fixed cost that the factory must pay regardless of the number of umbrellas produced.
In the given function C(x) = 2.83x + 1,350, the initial value is 1,350.
Interpreting this, it means that even if the factory does not produce any umbrellas (x = 0), they still have to pay $1,350 as their fixed cost. This could include expenses such as rent, utility bills, salaries, etc., that are incurred regardless of production.