Question

Chloe is in the business of manufacturing phones. She must pay a daily fixed cost of $300 to rent the building and equipment, and also pays a cost of $75 per phone produced for materials and labor. Make a table of values and then write an equation for C, commaC, in terms of p, commap, representing total cost, in dollars, of producing pp phones in a given day.

Answer 1

Fixed daily cost = $300. Variable cost = $75 per phone.

Table of values (p = number of phones, C = total cost in dollars):
- p = 0 → C = $300
- p = 1 → C = $375
- p = 2 → C = $450
- p = 3 → C = $525
- p = 4 → C = $600
- p = 5 → C = $675
- p = 10 → C = $1,050

Equation:
C(p) = 300 + 75p, for p ≥ 0 (typically p is a whole number).