the y axis is revenue in millions and the x-axis is units sold.
an equation for the line of best fir of the graph below could be y=1/4x+3
where does the slope of 1/4mean in context?
what does the y-intercept of (0,3) mean in context?
there is an increase of 1 million in revenue for every 4 units sold.
when 0 units are sold, the revenue is 3 million. when 3 units are sold the revenue is 0 million, there is an increase of 4 million in revenue for every 1 unit sold
The slope of 1/4 means that for every 1 unit increase in the number of units sold, there will be an increase of 1/4 million dollars in revenue.
The y-intercept of (0,3) means that when no units are sold (x=0), the revenue is 3 million dollars. This indicates that there is a fixed cost or baseline revenue of 3 million dollars, even if no units are sold.