Question

Gary’s is a small publishing company that publishes math books. The production costs include a one-time cost for editing the book, which is $1,050 for the book the company is currently working on (The Universe of Math). Once the book is in production, the only cost will be the variable cost of printing, which is $15 per book. The company will market the book at a price of $35.

Part A
If you were to plot a graph of the profit generated by this book, what would the slope and the y-intercept represent?

Answer 1

The Slope represents the difference of the selling price and the product cost: m=35-15=20 and the Y-intercept represents the one time cost of the editing books: b=-1,050