Question

A business wants to manufacture refridgerators. Before they start production, they need to make sure they can make a profit with the materials and labor force they have. Their accountant has given them a cost equation of y=0.6x+18300 and a revenue equation of y=0.9x. What does x represent in the cost equation?

Answer 1

X is the number of refridgerators

Explanation:

A cost function express the sum of fix cost and variable cost. In this case the fix cost is 18300 and the variable cost depends on the number of unit produced that is the refridgerators.