Solve the problem.
-It costs $400 to start up a business of selling hot dogs. Each hot dog costs $0.55 to produce. Find the cost function C(x) = mx + b whose input is the number of hot dogs and whose output is the total
Cost.
A) C(x) = 55x + 400
B) C(x) = 0.55x - 400
C) C(x) = 0.55x + 400
D) C(x) = 400x + 0.55

Question

Quizplus · Accepted Answer

The fixed cost or startup cost is $400, which is the y-intercept or b value in the cost function equation. Each hot dog costs $0.55 to produce, which is the variable cost or the slope or the m value in the cost function equation. Therefore, the cost function equation can be written as C(x) = 0.55x + 400. Choice C matches this equation, so it is the best choice.

Solve the Problem. -It Costs $400 to Start Up a Business of Selling