In manufacturing a medical equipment, a firm incurs costs of two types. Fixed annual costs of $ 145,500 are incurred regardless of the number of units produced. In addition, each unit produced costs the firm $7. If C equals total annual cost in dollars and x equals the number of units produced during a year; a) Develop the linear function C = f(x) which expresses annual cost. b) Calculate f (320)? What does f (320) represent? c) What is the y-intercept in the linear function that you have formed in part a and what does it signify?
Answer:
It is needed $2,385,500 to produce 320,000 units.
y-intercept.
It is fixed annual costs are incurred regardless of the number of units produced.
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