Answer:
Y = $4,173 + ($5.13)X
Explanation:
A fixed monthly operating cost of $4,173 is a monthly cost that will not change no matter the number or unit of t-shirt produced, while $5.13 is the variable costs of making each t-shirt. This can be presented in a linear equation as follows:
Y = a + bX .............................. (1)
Where,
Y = Total monthly cost of producing shirts
a = fixed cost = $4,173
b = variable cost of each shirt = $5.13
X = number of shirts produced
Using the values already given, equation (1) can be rewritten as follows:
Y = $4,173 + ($5.13)X .............................. (2)
Equation (2) is the required linear equation.
