A company that manufactures bicycles has a fixed cost of $80,000. It costs $200 to produce each bicycle. The

Question

total cost for the company is the sum of its fixed cost and variable costs. Write the total cost, C, as a function of
the number of bicycles produced, x. Then, find and interpret C(110).

..

The total cost function is C(x)= 80,000 +200x

Determine the interpretation of C(110). Select the correct choice below and fill in the answer box(es) to complete
your choice.

(Simplify your answers.)

DA. C(110) =

O B. C(110) =

It costs $

It costs $110 to produce

to produce 110 bicycles.

bicycles.

Answer 1

To write the total cost function as a function of the number of bicycles produced, \( x \), we have:

\[ C(x) = 80,000 + 200x \]

To find \( C(110) \), we substitute \( x = 110 \) into the total cost function:

\[ C(110) = 80,000 + 200 \times 110 \] \[ C(110) = 80,000 + 22,000 \] \[ C(110) = 102,000 \]

Thus, \( C(110) = 102,000 \).

Interpretation of \( C(110) \):

So, it costs $102,000 to produce 110 bicycles.

Let's select the correct choice and fill in the answer box:

Choice A: C(110) = 102,000

Interpretation: It costs $102,000 to produce 110 bicycles.