# 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.

Relevance
• Anonymous
7 years ago

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

• 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