Question

question 3
company 2 provides the following statement to explain its pricing model:
\it costs $100 to set up a screen print and each shirt costs $2.75.\
if ( g ) is the price function for ordering ( x ) number of shirts from company 2, what is the function modeling company 2’s pricing?
a ( g(x) = 100x + 2.75 )
b ( g(x) = 97.25x )
c ( g(x) = x + 97.25 )
d ( g(x) = 2.75x + 100 )

Explanation:

Step1: Identify fixed and variable costs

Fixed cost: $\$100$, variable cost per shirt: $\$2.75$

Step2: Build total cost function

Total cost = variable cost + fixed cost, so $g(x) = 2.75x + 100$

Answer:

D. $g(x)=2.75x + 100$