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College Algebra

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A company builds bicycles. Their fixed cost is 300,000 and it costs $500 to make each bicycle(labor,materials,etc.)

A)What is the cost equation and what is the average cost per bicycle?

B)If the revenue equation is -3x^2+3200x where x is the number of bicycles, how many bicycles does the company need to sell to maximize profits?

  • College Algebra -

    C(x) = 300000+500x
    avgC(x) = C(x)/x = 300000/x + 500

    P(x) = R(x)-C(x) = -3x^2 + 2700x - 300000
    = 3(-x^2 + 900x - 100000)

    max P(x) at -900/-2 = 450

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