The RideEm Bicycles factory can produce 110 bicycles in a day at a total cost of $10,900 and it can produce 130 bicycles in a day at a total cost of $11,600. What are the company's daily fixed costs?

What is the marginal cost per bicycle?

Question

The RideEm Bicycles factory can produce 110 bicycles in a day at a total cost of $10,900 and it can produce 130 bicycles in a day at a total cost of $11,600. What are the company's daily fixed costs?

What is the marginal cost per bicycle?

anonymous · Answer

$$y-y_{1}=(\frac{y_{2}-y_{1}}{x_{2}-x_{1}})(x-x_{1})$$
$$y-10900=(\frac{11600-10900}{130-110})(x-110)$$
$$y-10900=35(x-110)$$
$$y-10900=35x-3850$$
$$y=35x+7050$$

anonymous · Answer

$35/bike, fixed cost of 7050

anonymous · Answer

this is not mathematics this is management. how ever fixed costs mean the Direct labour, direct material and Direct O/H. fixed costs are fixed they dont change per the quantity.

anonymous · Answer

apply direct variation, then find the constant of proportionality (k)..

anonymous · Answer

although this is likely wrong...

i calculated it using ,

110x+C = 10600

130x + C = 11600

20x = 1000
x=50 

110(50) + c = 10600

5500+ C = 11600

11600 - 5500 = C