The y intercept is found by setting x to 0. What does that mean in this case? x is the number of DVD's manufactured. If we set that to 0, our costs are still $20,000. What this seems to mean is that it will cost us $20,000 just to get the company up and running, and ready to produce that first DVD. I would call that intercept "startup costs", that would typically include renting the facility, purchasing equipment, etc.
