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 С (x) = 2.83x + 1, 350. Identify and interpret the initial value. (1 point)

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 x umbrellas is modeled by the function С (x) = 2.83x + 1, 350. Identify and interpret the initial value. (1 point)

• The initial value of 2.83 represents the variable cost.
• The initial value of 1,350 represents the variable cost.
• The initial value of 2.83 represents the fixed cost.
• The initial value of 1,350 represents the fixed cost.

Answer 1

The initial value of 1,350 represents the fixed cost. This means that the factory has to pay $1,350 in fixed costs, regardless of how many umbrellas they produce. This cost does not change with the level of production.