1. Independent Variable (x) is the number of toys.
Dependent Variable (y) is the amount.
2. Graph A - Income Graph.
Graph B - Expense Graph.
3. Zandi won't make a profit while selling 5 toys.
4. Zandi must sell 10 toys to reach break-even.
5. Zandi's variable cost per toy is $15.
6. The total cost function is, total cost = 100 + 15x.
1. The independent variable will be the number number of toys marked on the x-axis, whereas the dependent variable will be the amount on the y-axis, as the cost and revenue both depend on the units.
2. Graph A will be Zandi's income as when the unit is 0, the income is 0, whereas graph B is the expense graph as when the unit is 0, still some fixed expenses are generated for example rent.
3. Zandi will make a loss while making and selling 5 toys as the amount on graph B corresponding to 5 toys, that is, the expenses, are greater than the amount on graph A corresponding to 5 toys, that is, the income.
4. The break-even is the point where the income = expense, which on the graph is at the point where the number of toys is 10.
Thus, Zandi must sell 10 boys to reach break even.
5. The variable cost per toy can be found as the slope of the expense graph, m = (400 - 100)/(20 - 0) = 300/20 = 15.
Thus, Zandi's variable cost is $15.
6. Total cost = Fixed cost + a number of units*variable costs.
Thus, the total cost = 100 + 15x.
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