Question

A small bicycle manufacturer has a daily fixed costs of $1942 and each bicycle costs $78 to manufacture. Let x represent the number of bicycles manufactured and C(x) represents the cost of manufacturing. Complete parts a through c

Answer 1

Answer:

The correct answer is C (x) = 1942 + 78 × x.

Step-by-step explanation:

Fixed cost is a cost that a manufacturer bears even if its not producing any amount of commodities. Whereas variable cost depends on the number of commodities manufactured.

Daily fixed cost of the small bicycle manufacturer is $1942.

Let the number of bicycle manufactured be x.

Cost of manufacturing each bicycle is $78.

Total variable cost of manufacturing x number of bicycles is 78 × x.

∴ The total cost of manufacturing is given by

C (x) = Fixed Cost + Variable cost.

⇒ C (x) = 1942 + 78 × x.