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

Question

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 a umbrellas is modeled by the function C (x) = 2.83 + 1, 350. Identify and interpret the
initial value. (1 point)
O The initial value of 2.83 represents the variable cost.
O The initial value of 1,350 represents the variable cost.
• The initial value of 1,350 represents the fixed cost
O The initial value of 2.83 represents the fixed cost.

Answer 1

The initial value of 2.83 represents the fixed cost. This means that even if the factory does not produce any umbrellas, they still have to pay $2.83 as a fixed cost.