Problema Solution

Aki's bicycle desings has determined that when x hundred bicycles are built, the average cost per bike is given by C(x)=0.2x^2-1.6x+8.735, where C(x) is in hundreds of dollars. How many bikes should the shop build to minimize the average cost per bike?

Answer provided by our tutors

C(x) = .2x^2-1.6x+8.735

C'(x) =.4x-1.6

for minimum:

C'(x) =0

==>.4x -1.6=0

==>x = 4

so,for 400 bicycle average cost will be minimum.