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

 For this case we have the following equation:
 [tex] c (x) = 15x + 12000 [/tex]
 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]
 The fixed cost of producing the chips is:
 c (0) = 12000