6
QuizMultiple Choice

Modeling with Rational Functions — Quiz

Question 6 • Mathematics III

The function f of x is equal to the fraction with numerator 80 comma 000 plus 0 point 2 x and denominator x yields the average cost in dollars for a company to produce x copies of a comic book. Which statement best fits the situation modeled by the function?

Answer
A
The company spends 20 cents on materials to produce each copy.
B
The company earns 20 cents as profit from each copy sold.
C
The company earns 20 percent of the issue price as profit from each copy sold.
D
The company spends 20 percent of the issue price on materials to produce each copy.

Explanation

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.

AI-written and checked against the verified answer.

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