Question

The manufacturer of pencils spends $0.05 to make each pencil and sells them for

0.25. The manufacturer also has fixed costs each month of $2000. Find the cost function C when x pencils are manufactured.

Answer 1

Answer: C(x) = 2000+ 0.05 x

Explanation:

Hi, to answer this question we simply have to apply the next formula:

Cost (C) = fixed cost + (cost per pencil x number of pencils)

Since:

Fixed cost: $2000

Cost per pencil : $0.05

Replacing with the values given:

C(x) = 2000+ 0.05 x

Where x is the number of pencils manufactured.

Feel free to ask for more if needed or if you did not understand something.