Question

A company that manufactures bicycles has a fixed cost of $90,000. It costs $100 to produce each bicycle. The total cost for the company is the sum of its fixed cost and variable costs. Write the total

cost, C, as a function of the number of bicycles produced, x. Then, find and interpret C(110).

Answer 1

109000

Explanation:

Step 1

The function C(x) that we will be writing contains the fixed cost of manufacturing a bicycle and a variable cost for producing a bicycle.

We have a fixed cost equal to $100,000. The variable cost is dependent on the number of bicycles produced, which is represented by $100x. The sum of the cost represents the function C(x), which is written as:

C(x) = 100000 + 100x

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Step 2

We want to interpret C(90), which means what will be the total cost of producing 90 bicycles. We substitute 90 on x at the function C(x) and solve for C(90), which is shown as follows:

C(90) =100000+100(90)

=100000+ 9000

=109000

Therefore, the total cost of producing 90 bicycles is $109000.

Hope this helps you!