Chapter 1.4, Problem 118AE

Cost Equation The fixed costs of operating a business are the costs incurred regardless of the level of production. Fixed costs include rent, fixed salaries, and costs of leasing machinery. The variable costs of operating a business are the costs that change with the level of output. Variable costs include raw materials, hourly wages,and electricity. Suppose that a manufacturer of jeans has fixed daily costs of $\text{\$500}$ and variable costs of $\$8$ for each pair of jeans manufactured. Write a linear equation that relates the daily cost $C$. in dollars, of manufacturing the jeans to the number $x$ of jeans manufactured. What is the cost of manufacturing 400 pairs of jeans? 740 pairs?