Question

The function f(x) = 80,000 + 0.2x/x yields the average cost in dollars for a company to produce x copies of comic book. Which statement best fits the situation modeled by the function?

The company earns 20% of the issue price as profit for each copy sold.
The company earns .20 cents as profit for each copy sold.
The company spends 20% of the issue price on materials to produce each copy.
The company spends 20 cents on materials to produce each copy.

Answer 1

The correct answer is D:The company spends 20 cents on materials to produce each copy.

Answer 2

Option D is correct.

Company spends 20 cents on materials to produce each copy

Explanation:

Given the function:
`f(x) = (80,000+0.2x)/(x)`

where

f(x) represents the average cost in dollars for a company

x represents the number of copies of comic produced by company.

Total cost in dollars for a company = 80,000 + 0.2x

Since, x is the number of copies of comic produced ,

0.2x indicates that it spends $0.2 on material to produce each copy.

Use conversion:

1 dollars = 100 cents

0.2 dollars = 20 cents.

therefore, the company spends 20 cents on material to produce each copy.