The RideEm Bicycles factory can produce 110 bicycles in a day at a total cost of $10,300. It can produce 130 bicycles in a day at a total cost of $11,000. What are the company's daily fixed costs (in dollars)?

To find the company's daily fixed costs, we first need to determine the variable cost per bicycle.

Step 1: Calculate the variable cost per bicycle The variable cost can be found by subtracting the total cost of producing 110 bicycles from the total cost of producing 130 bicycles, and then dividing by the difference in the number of bicycles produced.

Variable cost per bicycle = (Total cost of producing 130 bicycles - Total cost of producing 110 bicycles) / (130 bicycles - 110 bicycles)

Variable cost per bicycle = ($11,000 -$10,300) / (130 - 110)

Variable cost per bicycle = $700 / 20

Variable cost per bicycle = $35

Step 2: Calculate the fixed costs Now that we know the variable cost per bicycle, we can find the fixed costs by subtracting the total variable costs from the total costs.

Fixed costs = Total cost - Total variable costs

Fixed costs = Total cost - (Number of bicycles * Variable cost per bicycle)

Using the data for 110 bicycles:

Fixed costs = $10,300 - (110 *$35)

Fixed costs = $10,300 -$3,850

Fixed costs = $6,450

So, the company's daily fixed costs are $6,450.