Refer to Problem 47. Suppose that the landlord of the building increases the bicycle manufacturer’s rent by $100 per month.

(a) Assuming that the manufacturer is open for business 20 days per month, what are the new daily fixed costs?

(b) Write a linear model that expresses the cost C of manufacturing x bicycles in a day with the higher rent.

(c) Graph the model.

(d) What is the cost of manufacturing 14 bicycles in a day?

(e) How many bicycles can be manufactured for $3780?

Data from problem 47

The simplest cost function is the linear cost function, C(x) = mx + b, where the y-intercept b represents the fixed costs of operating a business and the slope m represents the cost of each item produced. Suppose that a small bicycle manufacturer has daily fixed costs of $1800 and each bicycle costs $90 to manufacture.