15
QuizMultiple Choice

Modeling for Business: Part One — Test

Question 15 • Financial Math

A coffee shop has fixed monthly expenses of $⁢2,000 and a variable cost of $⁢2 per cup of coffee sold. The revenue is $⁢0 when 0 cups are sold and $⁢0 when 400 cups are sold due to capacity limits. The maximum revenue occurs when 200 cups are sold. Which system of equations represents the linear cost function C⁡(x) and the quadratic revenue function R⁡(x) , where x represents the number of cups of coffee sold?

Answer
A
cap c times x is equal to 2 comma 000 x plus 2 cap r times x is equal to negative x times open paren x minus 400 close paren
B
cap c times x is equal to 2 x plus 2 comma 000 cap r times x is equal to negative x times open paren x minus 400 close paren
C
cap c times x is equal to 2 x plus 2 comma 000 cap r times x is equal to negative x times open paren x minus 200 close paren
D
cap c times x is equal to 2 comma 000 x plus 2 cap r times x is equal to negative x times open paren x minus 200 close paren

Explanation

The cost function adds the fixed monthly expense to the variable cost for each cup: C(x) = 2,000 + 2x. Revenue is zero at x = 0 and x = 400, so its quadratic factors are x and (x − 400). A negative leading coefficient makes the parabola open downward, with its maximum halfway between the zeros, at 200 cups. Thus the matching system is C(x) = 2x + 2,000 and R(x) = −x(x − 400), choice B.

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