Question

Mike owns an electronics shop. He expects the revenue from the sales of mobile phones to increase by $100 with each unit sold. He targets a maximum revenue of $70,000. Thereafter, he expects the revenue, r, to drop by $100 with each unit sold, x. Which statements are true for this situation?

The equation that models the revenue is r = -100|x − 700| + 70,000.
The equation that models the revenue is r = -100|x − 70,000| + 70,000.
The equation that models the revenue is r = -|x − 100| + 70,000.
Revenue will be $50,000 for 500 units and 900 units.
Revenue will be $50,000 for 900 units and 1,200 units.

Answer 1

The equation that models the revenue is r = -|x -100| + 70,000.

Explanation:

Answer 2

The equation that models the revenue is r = -|x − 100| + 70,000

Explanation:

Mike owns an electronics shop. He expects the revenue from the sales of mobile phones to increase by $100 with each unit sold. He targets a maximum revenue of $70,000. Thereafter, he expects the revenue, r, to drop by $100 with each unit sold, x.

He targets maximum revenue , so leading coefficient is negative

sales of mobile phones to increase by $100 with each unit sold and then drops by $100 with each unit sold after reaching maximum revenue

So we use absolute function

r= - |x-100|

maximum revenue is 70,000 so we add it at the end

Revenue function becomes

r= - |x-100|+ 70000