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?
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