Question

A company that manufactures bicycles has a fixed cost of $90,000. It costs $200 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(100)
The total cost function is C(x)=

Answer 1

Total cost: C(x) = 90,000 + 200x in dollars

C(100) = $110,000

This means that the total cost for the company when it produces 100 bikes would be $110,000

Explanation:

First, you have a fixed cost, so you would start by setting C(x) to that:

C(x) = 90,000

Then, you have a cost of $200 PER bike that is made. The amount of bikes is represented by x. So you will have to multiply cost per bike by how many bikes are manufactured:

200x

Add this variable cost to the function underlined above.

C(x) = 90,000 + 200x

This is your function C(x).

Now for C(100), PLUG IN 100 for x:

C(100) = 90,000 + 200(100)

Multiply out:

C(100) = 90,000 + 20000

Then add these together to get the value:

C(100) = 110,000

This is the amount of money it would cost to make 110000 bikes, as interpreted above.