A company that manufactures bicycles has the fixed cost of $90,000. It costs $125 to produce each bicycle. The selling price is $275 per bike.
Let x represent the number of bicycles produced as well as sold.
• Find out the cost function, C. (Write only. No graph needed).
• Find out the revenue function, R. (Write only, No graph needed).
• Find out the break-even point (by any method other than graphing). Describe what this means.
• Employ your answers to parts A and B above to find R (525)-C (525). Explain what this means for the company.
• Employ formulas from your answers to the above questions to find out the company's profit function, P, from producing as well as selling x bicycles.
• Find out the company's profit if 725 bicycles are produced as well as sold.