Problem
1. The Redeem Bicycles factory can produce 100 bicycles in a day at a total cost of 0, 500 and it can produce 120 bicycles in a day at a total cost of $11,000.
a. Write the equation that models the cost function of producing x bicycles.
b. What are the company's daily fixed costs?
c. What is the marginal cost per bicycle?
d. What is the cost of producing 20 bicycles?
e. What is the cost of producing the 20^th bicycle?
2. A manufacturer can sell a certain product for $110 per unit. Total cost consists of a fixed cost of $7500 plus a variable cost of $60 per unit.
a. How many units must the manufacturer sell to break-even?
b. What is the manufacturer's profit or loss if 100 units are sold?
c. How many units must be sold for the manufacture to realize a profit of SI 250?