Problema Solution
A company that manufactures bicycles has a fixed cost of $100,000.00. It costs $100.00 to produce each bicycle. The selling price per bike is $300.00.
Write the cost function,c.
Write the revenue function,r
Determine the break-even point abd describr what that means.
In solving the exercise, let x represent the number of bicycles produced and sold.
Answer provided by our tutors
Let x be the number of bikes produced.
C = 100000+100x, the revenue R = 300x, then since cost = revenue, 100000+100x = 300x ==> x = 500