Question

Last month a manufacturing company produced 760 auto parts that cost the company a total of $42860. This month the company produced 540 auto parts accumulating a total of $31640 in cost. The cost of each part depends on the fluctuating oil prices on the stock market. Compute the slope of the costs and interpret its meaning.

A) Costs are increasing at a rate of $53 per item.
B) Costs are decreasing at a rate of $51 per item.
C) Costs are increasing at a rate of $55 per item.
D) Costs are increasing at a rate of $51 per item.
E) Costs are decreasing at a rate of $53 per item.
F) Costs are decreasing at a rate of $55 per item.

Answer 1

Explanation:

The slope m, is determined by

Slope = change in the value of y on the vertical axis/change in the value of x on the horizontal axis.

Slope = (y2 - y1)/(x2 - x1)

Where

y2 represents the final value of y

y1 represents the initial value of y

x2 represents the final value of x

x1 represents the initial value of x

From the information given,

y2 = $31640

y1 = $42860

x2 = 540

x1 = 760

Therefore,

Slope = (31640 - 42860)/540 - 760)

Slope = -11220/- 220 = $51 per item.

Costs are increasing at a rate of $51 per item.