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The cost C of producing C units is $2000 plus $1 per unit. Find a formula and graph the formula

User LJ Wilson
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1 Answer

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19 votes

Linear Modeling

Two variables y and x are said to be modeled by a straight line if the relationship between them is written as:

y = mx + b

Where m and b are constants.

In this case, C is the dependent variable and x (the number of units) is the independent variable, thus:

C = mx + b

We know each unit costs $1 to produce. This is the variable part of the equation. A total of $2000 are needed as a fixed amount of money regardless if we produce 1 or 100 units.

That is the fixed or constant part of the equation.

Joining these concepts, the required formula is:

C = 1*x + 2000

The number 1 can be omitted:

C = x + 2000

Now the graph is shown below:

The cost C of producing C units is $2000 plus $1 per unit. Find a formula and graph-example-1