A factory produces beach umbrellas. They have a fixed cost they must pay no matter how many umbrellas they produce, and a variable cost they must pay for each umbrella they produce. The cost of producing x umbrellas is modeled by the function C(x)=2.83x+1,350 . Identify and interpret the initial value.
The initial value in this context refers to the fixed cost that the factory must pay regardless of the number of umbrellas produced.
In the given function, C(x) = 2.83x + 1,350, the fixed cost (initial value) is 1,350. This means that the factory incurs a cost of $1,350 even if they don't produce any beach umbrellas.
Interpretation: The initial value of $1,350 represents the fixed cost that the factory must bear, including expenses like rent, insurance, administrative costs, etc., which remain constant irrespective of the number of umbrellas produced.