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    amullen's Avatar
    amullen Posts: 3, Reputation: 1
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    #1

    Feb 4, 2011, 03:40 PM
    Linear Cost Function
    Assume that each situation can be expressed as a linear cost function. Find the cost function in each case.

    Fixed Cost: $100;50 items cost $1600 to produce.
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    Unknown008 Posts: 8,076, Reputation: 723
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    #2

    Feb 4, 2011, 11:32 PM

    What have to tried so far?
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    amullen Posts: 3, Reputation: 1
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    #3

    Feb 5, 2011, 05:08 AM
    Comment on Unknown008's post
    I'm stuck altogther. I know the formula is c(x)=mx+b, but my issue is where to plug them in. If you could show me step by step I would really appreciate it.
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    Unknown008 Posts: 8,076, Reputation: 723
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    #4

    Feb 5, 2011, 08:37 AM

    The fixed cost, as the name suggests, means that it is independent, it doesn't have anything other value with it, meaning, the fixed cost is b in your formula.

    What is the variable cost now? It consists of firstly the cost of one item, multiplied by the number of items, to get the total cost of all items.

    What changes is the number of items, and the cost of each item here remains the same; all items cost the same. Hence, the number of items is x, and the price of one item is m.

    Can you post what you get? I told you where to plug them :)
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    amullen Posts: 3, Reputation: 1
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    #5

    Feb 7, 2011, 10:02 AM
    Comment on Unknown008's post
    c(x)=mx+100
    c(x)=50(1600)+100
    c(x)=80100
    So what am I forgetting to do?
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    Unknown008 Posts: 8,076, Reputation: 723
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    #6

    Feb 7, 2011, 10:21 AM

    The cost of 50 items, $ 1600
    The cost of 1 item is thus $ 32

    and m = 32

    So, the cost function becomes:

    C(x) = 32m + 100
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