The costs of doing business for a company can be found by adding fixed costs, such as rent, insurance, and wages, and variable costs, which are the costs to purchase the product you are selling. The cost equation has the form of a linear equation: C = mx + b; where x is the number of tiles, m is the cost per tile, and b is the fixed costs for making the tiles. The portion of the company’s fixed costs allotted to this product is $490, and the supplier’s cost per tile is $6 each.

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