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16 October, 06:39

Aki's Bicycle Designs has determined that when x hundred bicycles are built, the average cost per bicycle is given by C (x) equals0.2xsquaredminus0.4xplus6.636 , where C (x) is in hundreds of dollars. How many bicycles should the shop build to minimize the average cost per bicycle?

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  1. 16 October, 10:39
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    100 bicycles

    Step-by-step explanation:

    If C (x) = 0.2x²-0.4x+6.636

    The general form of a quadratic expression is given as: ax²+bx+c

    Therefore from C (x),

    a=0.2, b=-0.4, c=6.636.

    C (x) is a parabola with its "a" coefficient 0.2 being positive so the curve opens upward indicating that the vertex is a minimum.

    We simply need to find the vertex of:

    C (x) = 0.2x²-0.4x+6.636

    This occurs when:

    x = - b / (2a)

    x = - (-0.4) / (2*0.2)

    x = (0.4) / (0.4)

    x = 1

    Since x=1 at the vertex, the company should build 100 bicycles to minimize the average cost per bicycle.
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