SOLUTION: The RideEm Bicycles factory can produce 120 bicycles in a day at a total cost of $10,400. It can produce 140 bicycles in a day at a total cost of $11,200. What are the company'

Algebra ->  Linear-equations -> SOLUTION: The RideEm Bicycles factory can produce 120 bicycles in a day at a total cost of $10,400. It can produce 140 bicycles in a day at a total cost of $11,200. What are the company'      Log On


   

Question 1107281: The RideEm Bicycles factory can produce 120 bicycles in a day at a total cost of $10,400. It can produce 140 bicycles in a day at a total cost of $11,200.
What are the company's daily fixed costs?
What is the marginal cost per bicycle?
Answer by josgarithmetic(39617) About Me  (Show Source):
You can put this solution on YOUR website!
Ordered pair data points (x,y) using x for number bicycles and y for cost,
(120, 10400) and (140, 11200).

y=mx+b will have m slope as the cost per bicycle and fixed cost as b, vertical axis intercept.

m=%2811200-10400%29%2F%28140-120%29
m=800%2F20=80%2F2
m=40-----marginal cost per bike
-
y=mx%2Bb
b=y-mx
b=10400-40%2A120
b=10400-4800
b=5600-------fixed cost
-
highlight%28y=40x%2B5600%29-------cost y of producing x bicycles.