A company discovers that to produce x=870 new electronic parts, it will cost y=$89,170. To produce 860 new electronic parts, it will cost $88,260.

Question

A company discovers that to produce 870 new electronic parts, it will cost $89,170. To produce 860 new electronic parts, it will cost $88,260.Compute the slope of the costs and choose the most accurate statement from the following:

1. Costs are decreasing at a rate of $91 per item.
2. Costs are decreasing at a rate of $87 per item.
3. Costs are increasing at a rate of $87 per item.
4. Costs are decreasing at a rate of $85 per item.
5. Costs are increasing at a rate of $85 per item.
6. Costs are increasing at a rate of $91 per item.

Answer 1

For this question, we need to find the slope of the equation to see if costs are increasing or decreasing.

slope = rise/run = change in y / change in x

In this case, x represents the number of electronic parts and y represents the total cost.

So, slope =

(89,170 - 88,260) / (870-860)

910 / 10

$91 per item.

Because the slope is positive, costs are increasing at a rate of $91 per item.