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A Manufacturing Company Produces Plastic Pipe Used in Wastewater Treatment y=1.45x+8000y = 1.45 x + 8000

Question 4

Multiple Choice

A manufacturing company produces plastic pipe used in wastewater treatment applications. The pipe measures 4 inches in diameter and is cut to 10-foot lengths. The manufacturers fixed costs are $8000 per month (The fixed cost is the cost to operate the company even if it produces no pipe. It Includes rent, debt payments, salaries, etc.) . It costs an additional $1.45 for each unit of pipe produced. The overall monthly production costs are described by the linear equation y=1.45x+8000y = 1.45 x + 8000 where y represents the total monthly operating cost and x represents the number of units of pipe Produced.
What does the y-intercept mean in the context of this problem?


A) The y-intercept represents the cost ($1.45) per unit of pipe.
B) The y-intercept indicates that the fixed cost increases by $8000 per month.
C) The y-intercept represents the increase in total cost when production is increased by one unit of pipe.
D) The y-intercept represents the fixed cost of $8000.

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