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3 years ago

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The RideEm Bicycles factory can produce 100 bicycles in a day at a total cost of $10,500. It can produce 120 bicycles in a day a

t a total cost of $11,000. What are the company's daily fixed costs, and what is the marginal cost per bicycle?

1 answer:

Luden [163]3 years ago

6 0

Answer:

The company's daily fixed cost=$8000

The marginal cost per cycle=Slope=$ 25

Step-by-step explanation:

We are given that

Factory produces bicycle in a day= $x_1=$ 100

Total cost, $y_1=$ $10,500

Factory produces bicycles in a day, $x_2$ =120

Total cost= $y_2=$ $11,000

There are two points (100,10500) and (120,11000)

Slope = $m=\frac{y_2-y_1}{x_2-x_1}$

Using the formula

$m=\frac{11000-10500}{120-100}=\frac{500}{20}=25$

Slope-intercept form

$y=mx+c$

Where m=Slope of line

c=y-intercept

Substitute the values

$10500=25(100)+c$

$10500=2500+c$

$c=10500-2500=8000$

y-intercept=8000

Substitute the values in the equation

$y=25x+8000$

Therefore, company's daily fixed cost=$8000

The marginal cost per cycle=Slope=$ 25

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