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

question 121

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 $y = 1.45 x + 8000$ 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.