To express: The cost as a function of the number of toaster ovens produced.
The cost function in terms of the number of toaster ovens produced is .
To produce 1000 toaster ovens in a week it costs $9000 and to produce 1500 it costs $12000.
The cost function follows a liner function.
Let the cost function as, . (1)
The slope of the line m is given by .
According to the given data, there exist two points and .
The slope of line passes through and is,
Substitute in equation (1).
Substitute in ,
Therefore, the cost function is, .
Use online graphing calculator and obtain the graph of function as shown in Figure1.
To find: The slope of graph and explain what it represent.
From part (a), the slope of the line is, it represents the rate of change of cost with respect the number of production of toaster.
To find: The y-intercept of graph and explain what it represent.
From part (a), the equation is, .
Notice that the y-intercept is $3000. It represents the fixed cost even there is no production.
Subscribe to bartleby learn! Ask subject matter experts 30 homework questions each month. Plus, you’ll have access to millions of step-by-step textbook answers!