Question 6 • Mathematics III
The average cost is f(x) = (80,000 + 0.2x)/x = 80,000/x + 0.2. The term 80,000 represents fixed costs, while 0.2x means the variable cost is $0.20 for each copy produced. Therefore, the statement that the company spends 20 cents on materials to produce each copy best fits the function.
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