Question

a company that manufactures bicycles has a fixed cost of $80,000. 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 fiction of the number of bicycles produced, x. then, find and interpret C(90).

Answer 1

C(x) = 80000 + 100x is the total cost as function of number of cycles produced

C(90) = 89000 and it costs $ 89000 to produce 90 bicycles

Solution:

Given that, company that manufactures bicycles has a fixed cost of $80,000

Fixed cost = $ 80,000

Let x be the number of cycles produced

Let C(x) be the total cost as function of number of cycles produced

It costs $100 to produce each bicycle

Variable cost = 100 x number of cycles produced

variable cost = 100x

The total cost for the company is the sum of its fixed cost and variable costs

total cost = fixed cost + variable cost

C(x) = 80000 + 100x

Thus total cost as function of "x" is found

Find and interpret C(90)

Substitute x = 90 in C(x)

C(90) = 80000 + 100(90)

C(90) = 80000 + 9000

C(90) = 89000

Thus it costs $ 89000 to produce 90 bicycles