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LekaFEV [45]
3 years ago
9

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?
Mathematics
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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