Question

Sherrie is starting a business making birthday cakes out of her home. The equipment cost is $35.00 and it costs an average of $24 per cake to make them. This relationship is modeled by the equation C = 24n + 35. What does C represent in the equation?

A) The total cost of making n cakes.
B) The profit made from selling n cakes.
C) The revenue generated by selling n cakes.
D) The number of cakes Sherrie needs to sell to break even.

Answer 1

C in the equation represents the total cost of making n cakes, including both variable and fixed costs.

Step-by-step explanation:

In the equation C = 24n + 35, C represents the total cost of making n cakes. The equation includes a variable cost, which is $24 per cake, represented by the '24n' term where 'n' is the number of cakes. The fixed cost, which is the cost of equipment in this scenario, is represented by the constant value of $35. Therefore, option A) The total cost of making n cakes is the correct interpretation of what C represents in the equation.