Answer:
The company's daily fixed cost=$8000
The marginal cost per cycle=Slope=$ 25
Step-by-step explanation:
We are given that
Factory produces bicycle in a day=[tex]x_1=[/tex]100
Total cost,[tex]y_1=[/tex]$10,500
Factory produces bicycles in a day,[tex]x_2[/tex]=120
Total cost=[tex]y_2=[/tex]$11,000
There are two points (100,10500) and (120,11000)
Slope =[tex]m=\frac{y_2-y_1}{x_2-x_1}[/tex]
Using the formula
[tex]m=\frac{11000-10500}{120-100}=\frac{500}{20}=25[/tex]
Slope-intercept form
[tex]y=mx+c[/tex]
Where m=Slope of line
c=y-intercept
Substitute the values
[tex]10500=25(100)+c[/tex]
[tex]10500=2500+c[/tex]
[tex]c=10500-2500=8000[/tex]
y-intercept=8000
Substitute the values in the equation
[tex]y=25x+8000[/tex]
Therefore, company's daily fixed cost=$8000
The marginal cost per cycle=Slope=$ 25
