Question

A company that manufactures bicycles has a fixed cost of $100,000. It costs $100 to produce each bicycle. The selling price per bike is $300.

Write the cost function, C.
Write the revenue function, R.
Determine the break-even point. Describe what this means.
Hint: In solving this exercise, let x represent the number of bicycles produced and sold.

Answer 1

online college?

Answer 2

yeah playing catch up... fel behind a bit

Answer 3

Fixed cost = $100,000
-- this is the cost the money will spend even if they produce no bikes.

Cost per bike = $100
-- this is an operational cost. It costs $100 to build one bike.

Cost of x bikes = x*$100

Revenue per bike = $300
-- this is the amount of money that will be made when each bike is sold. It's the price of the bike.

Revenue for x bikes = x*$300

x = number of bikes produced and sold

i. C = cost = fixed cost + variable cost
C = $100,000 + $100*x

ii. R = revenue = amount of money made
R = x*$300

iii. The break-even point is the point at which your Total Cost (C) is the same as your Total Revenue (R). In other words, it's the point at which you make $0.

C = R
$100,000 + $100*x = $300*x
$100,000 = $200*x
x = 500

After building 500 bicycles you break even.

Answer 4

Oh cool.
its good to study! :D

Answer 5

thnks

Answer 6

welcome.
please hit good answer.

Answer 7

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Answer 8

how are you with graphs.