From the graph of the problem we see that:
• the y-intercept is b = 0,
,
• taking the points (x1,y1) = (0,0) and (x2,y2) = (10,7500), the slope of the line is:
So the equation of the line is:
For x = 12 employees, the weekly costs are:
Comparing the weekly costs per 12 employees of this year ($9000), and the costs of the next year ($7200), we see that the following year the cost decreases.
Answer: The following year the rate decreases.