A company manufactures high-end racing bicycles. The total cost to manufacture 28 bikes is $25005. The daily fixed costs are $2605. Fixed costs refers to expenses that must be paid even when producing zero bikes, such as rent, utilities, etc. Assume that total cost, C, is linearly related to the number of bicycles, x, that the company manufactures.

Question

The cost function is:

Answer 1

C = 2605 + (25005/28)x