Question

A company manufactures and sells slippers. the price it charges wholesalers is $18 per pair. The company has fixed annual costs of $30,000. In addition, it costs the company $4.50 to make each pair of slippers.

Write the cost function c(x), where x is the number of slippers sold in a year and c(x) is the annual cost for the company.

Answer 1

well, the company has an overhead, or fixed cost, of 30,000
usually, machinery, premises lease, transportation and others
now, each slipper costs the company $4.50 to make
now, they sell them for $18 to wholesalers, but that doesn't matter in this case
we're interested in the cost the company infers into

so... if they sell 200 slippers, their cost is 200*4.5
add to that the overhead of 30,000, so 30,000+(200*4.5)

now if they sell 2,000,000 slippers, their cost is 2,000,000 * 4.5
plus the overhead

if they sell 10,000, the cost is 10,000*4.5, plus overhead

so... if they "x" quantity of slippers
their cost would be x * 4.5 plus overhead

Answer 2

I got it. Thank you. :)