Understanding Business Finance

Joy L asked:


Business and finance. In planning for a new item, a manufacturer assumes that
the number of items produced x and the cost in dollars C of producing these items
are related by a linear equation. Projections are that 100 items will cost $10,000 to
produce and that 300 items will cost $22,000 to produce. Find the equation that
relates C and x.

Can someone please explain??

Emanuel

One Response to “Business and finance. In planning for a new item, a manufacturer assumes that?”

1. flyash391 Says:
   April 19th, 2009 at 7:30 am

   10000 = 100x + b
   22000 = 300x + b
   subtract the equations
   12000 = 200x
   x = 60

   10000 = 100(60) + b
   b = 10000 - 6000 = 4000

   so

   Cost = 60 x + 4000