Question

Virtual Fido is a company that makes electronic virtual pets. The money made for the sale of each pet is represented by the function: S(x)=$1000-x, where N(x)=x represents the number of virtual pets made and sold each week. The fixed weekly cost is $3000, and variable costs for each pet are $20.

What is the weekly cost function, C(x), for Virtual Vido?

Answer 1

The total cost is simply the sum of the fixed cost and the variable cost per product. In this problem the total cost or the weekly cost function is:

C (x) = $3000 + $20 x

where x is the total number of pets made every week