SOLUTION: One company manufactures high-end racing bicycles. The monthly fixed costs are $3520. The total cost to manufacture 29 bikes is $31360. Assume that total cost, C, is linearly rela

Algebra ->  Finance -> SOLUTION: One company manufactures high-end racing bicycles. The monthly fixed costs are $3520. The total cost to manufacture 29 bikes is $31360. Assume that total cost, C, is linearly rela      Log On


   

Question 986502: One company manufactures high-end racing bicycles. The monthly fixed costs are $3520. The total cost to manufacture 29 bikes is $31360. Assume that total cost, C, is linearly related to the number of bicycles, x, that the company manufactures.
A) The cost function is?
B) The total cost to manufacture 27 bikes is $ ?
C) The cost to produce each additional bike is $ ?
Answer by ankor@dixie-net.com(22740) About Me  (Show Source):
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One company manufactures high-end racing bicycles.
The monthly fixed costs are $3520.
The total cost to manufacture 29 bikes is $31360.
Assume that total cost, C, is linearly related to the number of bicycles, x, that the company manufactures.
:
Find the cost per bicycle minus the fixed cost.
%28%2831360-3520%29%29%2F29 = $960
:
A) The cost function is?
C(x) = 960x + 3520
:
B) The total cost to manufacture 27 bikes is $ ?
x = 27
C(x) = 960(27) + 3520
C(x) = 25920 + 3520
C(x) = $29440
:
C) The cost to produce each additional bike is $960