Problem states:
Business and finance. 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.
My equation answer for par A is:
C = 10x + 40
To solve this problem, we need to understand what the given variables represent and how they relate to the cost equation.
In the cost equation C = mx + b, C represents the total cost of producing a certain number of items, x represents the number of items being produced, m represents the variable cost per item, and b represents the fixed cost.
Given that the fixed cost is $40 and the variable cost is $10, we can substitute these values into the cost equation.
The cost equation becomes: C = 10x + 40.
This means that the total cost (C) is equal to the variable cost per item ($10) multiplied by the number of items (x), plus the fixed cost ($40).