Who can solve this problem?

A company is planning to manufacture mountain bikes. The fixed monthly cost will be $200,000 and it will cost $300 to produce each bicycle.

Write the cost function, C, of producing x mountain bikes per month.

C(x)= ?

Write the average cost function, A, of producing x mountain bikes per month.

A(x)= ?

Find and interpret (500)

A(500)= ?

What does this mean?

When _ bicycles are produced in a month, it costs $_ to produce each bicycle.

2 Answers

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  • Anonymous
    7 years ago
    Favorite Answer

    Wow, dude up top answered it lol I was just going to say google it! Bikes are pricey though

  • Mercy
    Lv 7
    7 years ago

    Let H = 100000.

    If they make 1 bike, the cost will be H + 1 * 100 = H + 100

    If they make 2 bikes, the cost will be H + 2 * 100 = H + 200

    and so on

    to make x bikes, the cost will be H + x * 100

    Since that is spread over x bikes,

    the average cost is (total cost) / (number of bikes) =

    (H + x * 100) / x = H/x + 100

    If we want that to equal 300 we solve

    H/x + 100 = 300

    H/x = 200

    H/200 = x

    Since H = 100000

    x = 500

    Checking:

    500 bikes cost 100000 + 500 * 100 = 150000

    and 150000 / 500 = 1500 / 5 = 300

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