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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?
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