Solve the problem.
-A small company that makes hand-sewn leather shoes has fixed costs of $320 a day, and total costs of $1200 per day at an output of 20 pairs of shoes per day. Assume that total cost C is linearly related to output x. Find an
Equation of the line relating output to cost. Write the final answer in the form C = mx + b.
A) C = 44x + 320
B) C = 60x + 320
C) C = 44x + 1520
D) C = 60x + 1520

Question

Quizplus · Accepted Answer

The slope, m, is found by dividing the change in total cost by the change in output, which is ($1200 - $320) / (20 - 0) = $880 / 20 = $44. The fixed cost, b, is $320. So, the equation is C = 44x + 320.

Solve the Problem. -A Small Company That Makes Hand-Sewn Leather Shoes Has Fixed