Question
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A company that manufactures bicycles has a fixed cost of \( \$ 100,000 \). It costs \( \$ 200 \) 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 function of the number of bicycles produced, \( x \). Then, find and interpret \( C(110) \). The total cost function is \( C(x)=\square \).

Ask by Hill Pearson. in the United States
Feb 03,2025

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Answer

The total cost function is \( C(x) = 100,000 + 200x \). When 110 bicycles are produced, the total cost is \$122,000.

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The total cost function, \( C(x) \), can be expressed as the sum of the fixed costs and the variable costs. Given that the fixed cost is \( \$100,000 \) and it costs \( \$200 \) to produce each bicycle, the function is: \( C(x) = 100,000 + 200x \). Now, to find \( C(110) \), we can substitute \( x = 110 \): \( C(110) = 100,000 + 200(110) = 100,000 + 22,000 = 122,000 \). This means that if the company produces 110 bicycles, the total cost will be \( \$122,000 \). This cost covers both the fixed expenses and the variable expenses associated with manufacturing those bicycles!

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