The simplest cost function is the linear cost function, C(x) =mx+b where the y-intercept brepresents the fixed costs of operating a business and the slope m represents the cost of each item produced. Suppose that a small bicycle manufacturer has daily fixed costs of $1800 and each bicycle costs $90 to manufacture. (a) Write a linear model that expresses the cost C of manufacturing x bicycles in a day. (b) Graph the model. (c) What is the cost of manufacturing 14 bicycles in a day? (d) How many bicycles could be manufactured for $3780?

College Algebra
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ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter1: Equations And Graphs
Section1.3: Lines
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The simplest cost function is the linear cost function, C(x) =mx+b where the y-intercept brepresents the fixed costs of operating a business and the slope m represents the cost of each item produced. Suppose that a small bicycle manufacturer has daily fixed costs of $1800 and each bicycle costs $90 to manufacture. (a) Write a linear model that expresses the cost C of manufacturing x bicycles in a day. (b) Graph the model. (c) What is the cost of manufacturing 14 bicycles in a day? (d) How many bicycles could be manufactured for $3780?

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