Problema Solution
kis bike cycle designs has determined that when x hundre bicylces are built, the average cost per bicycle isgiven by C(x)= 0.1x^0.1.2x+4.025, hundreds of dollars. How many bicycles should the shop build to minimize the average cost per bicycle?
Answer provided by our tutors
We need to find the vertex of the quadratic function:
0.1x^2 - 1.2x+4.025 = 0
Minimum occurs when x = -b/2a, where a = 0.1 and, b = -1.2
x = -(-1.2)/(2*0.1)
x = 6 bicycles
The company should build 6 bicycles to minimize average cost per bicycle.