A company that manufactures bicycles has a fixed cost of \( \$ 80,000 \). It costs \( \$ 150 \) to produce each bicycle. The total cost for the company is the sum of its fixed cost and variable costs. Write the total cost, C, as a function of the number of bicycles produced, \( x \). Then, find and interpret \( C(90) \).
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Mind Expander
The total cost \( C \) can be expressed as a function of the number of bicycles produced, \( x \), as follows: \[ C(x) = 80,000 + 150x \] This equation signifies that the total cost comprises a fixed cost of \( \$ 80,000 \) plus \( \$ 150 \) for each bicycle produced. Now, to find \( C(90) \): \[ C(90) = 80,000 + 150(90) = 80,000 + 13,500 = 93,500 \] So, \( C(90) = 93,500 \). This means that if the company produces 90 bicycles, the total cost incurred would be \( \$ 93,500 \). This includes both the fixed costs and the variable costs associated with producing those bicycles!
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