Answer:
c(x) = 40 (x) + $6,900
Step-by-step explanation:
According to the scenario, given data are as follows,
Total cost of 100 bicycles (x1) = $10,900
Total cost of 120 bicycles (x2) = $11,700
Let Number of bicycles = X
Than cost of X bicycles = c(X)
let, fixed cost be F and variables cost be V, than
c(X) = V(X) + F
So, we can calculate variable cost by using following method,
V = c(x2) - c(x1) ÷ ( x2 - x1)
= ( $11,700 - $10,900) ÷ ( 120 - 100)
= $800 ÷ 20
= $40
So, calculate fixed cast by putting value to equation,
$10,900 = ($40 ×100) + F
F = $10,900 - $4,000 = $6,900
So, For x number of bicycles, cost equation will be,
c(x) = 40 (x) + $6,900
