Exxon manufacturing produces chips for computers the cost of producing X chips is given by c(x)=15x + 12000. the company sells each chip for $20 based on the given information what is the fixed cost of producing the chips?
Accepted Solution
A:
For this case we have the following equation: [tex] c (x) = 15x + 12000
[/tex] Where, x: number of chips c (x): total cost To find the fixed cost, we must find the intersection with the y axis of the given equation. So we have that for x = 0: [tex]c (0) = 15 (0) + 12000
c (0) = 12000[/tex] Therefore, the fixed production cost is given by: [tex] c (0) = 12000
[/tex] Answer: The fixed cost of producing the chips is: c (0) = 12000