Question

A company is planning to manufacture mountain bikes. The fixed monthly cost will be $100,000 and it will cost $200 to produce each bicycle. Write the cost function, C, of producing x mountain bikes per month. C(x)=

Answer 1

C(x) = fixed costs + variable costs

Here,

C(x) = $100,000 + ($200/bike)x, where x is the # of bikes produced.