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=
100
Total cost,
$10,500
Factory produces bicycles in a day,
=120
Total cost=
$11,000
There are two points (100,10500) and (120,11000)
Slope =![m=\frac{y_2-y_1}{x_2-x_1}](https://tex.z-dn.net/?f=m%3D%5Cfrac%7By_2-y_1%7D%7Bx_2-x_1%7D)
Using the formula
![m=\frac{11000-10500}{120-100}=\frac{500}{20}=25](https://tex.z-dn.net/?f=m%3D%5Cfrac%7B11000-10500%7D%7B120-100%7D%3D%5Cfrac%7B500%7D%7B20%7D%3D25)
Slope-intercept form
![y=mx+c](https://tex.z-dn.net/?f=y%3Dmx%2Bc)
Where m=Slope of line
c=y-intercept
Substitute the values
![10500=25(100)+c](https://tex.z-dn.net/?f=10500%3D25%28100%29%2Bc)
![10500=2500+c](https://tex.z-dn.net/?f=10500%3D2500%2Bc)
![c=10500-2500=8000](https://tex.z-dn.net/?f=c%3D10500-2500%3D8000)
y-intercept=8000
Substitute the values in the equation
![y=25x+8000](https://tex.z-dn.net/?f=y%3D25x%2B8000)
Therefore, company's daily fixed cost=$8000
The marginal cost per cycle=Slope=$ 25