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).

Question

Mathematics

Paris Martinez

23 September, 07:31

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).

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Answers (1)

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Tamara · 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