Answer:
The correct answer is C (x) = 1942 + 78 × x.
Step-by-step explanation:
Fixed cost is a cost that a manufacturer bears even if its not producing any amount of commodities. Whereas variable cost depends on the number of commodities manufactured.
Daily fixed cost of the small bicycle manufacturer is $1942.
Let the number of bicycle manufactured be x.
Cost of manufacturing each bicycle is $78.
Total variable cost of manufacturing x number of bicycles is 78 × x.
∴ The total cost of manufacturing is given by
C (x) = Fixed Cost + Variable cost.
⇒ C (x) = 1942 + 78 × x.
