The correct interpretation is:
The initial value of 1,350 represents the fixed cost.
In the cost function \( C(x) = 2.83x + 1,350 \), the fixed cost is the amount that must be paid regardless of the number of umbrellas produced, which is represented by the constant term 1,350. The variable cost is represented by the coefficient of \( x \), which in this case is 2.83, indicating the cost incurred for each additional umbrella produced.