Question

1. Try It # 1 A company sells doughnuts. They incur a fixed cost of $25,000 for rent, insurance, and other expenses. It costs $0.25 to produce each doughnut.

b. Find and interpret the y-intercept.

Answer 1

The y-intercept is 25000 . The intercept is the fixed cost of the doughnut selling company.

Explanation:

In the question, it is given that the fixed cost is $25000 and the expense to produce each doughnut is $0.25.

It is required to find and identify the y intercept.

To do so, use the equation derived in previous part of the exercise to interpret the slope. Compare the equation with standard equation of the line.

Step 1 of 1

The total cost of the company is the sum of fixed cost and the expenses for the doughnut, C=0.25x+25000.

Compare the equation with general linear equation y=mx+c.

The y-intercept is 25000 .

The intercept is the fixed cost of the doughnut selling company.