A company manufactures handband, a wireless activity tracker. There are initial start-up costs involved. Additionally, the company spends a certain amount of money to manufacture each hadband. The cost of manufacturing h handband is given by the function,C(h)= 21h+15000.
Which of the following statements are true? Check all that apply.
If the initial start-up costs are not considered, the value 21 is the cost to make one hadband.
The value 15000 represents the average number of headbands manufactured each year.
The value 15000 represents the start-up costs.
The function C(h) represents the revenue the company receives from the sales of headbands.
The company spends $57,000 to manufacture 2000 headbands.
The company earns $21 profit for each handband they sell.
The following statements are true:
- If the initial start-up costs are not considered, the value 21 is the cost to make one headband. This is because the constant term in the function C(h) is 21.
- The value 15000 represents the start-up costs. This is because it is the constant term in the function C(h).
- The company spends $57,000 to manufacture 2000 headbands. This can be calculated by substituting h=2000 into the function C(h) and evaluating it as C(2000) = 21(2000) + 15000 = 42000 + 15000 = $57,000.
- The company earns $21 profit for each headband they sell. This can be calculated by subtracting the cost of manufacturing one headband from the selling price. However, the selling price is not given in the question, so we cannot determine if this statement is true or not.