Question

Why does the range of this function include negative values? What is the significance of the point where the graph crosses the horizontal axis?

Answer 1

Answer/Step-by-step explanation:

In order to open a restaurant you have to rent a venue, furnish and decorate it, hire a staff and buy food and drinks. Before serving (selling) any meals you have to spend a lot of money. This is why the negative y-values.

At the point where the line crosses the x-axis (horizontal axis) you now begin to have a positive output to your operation. If you sell enough meals, you will turn a profit. That is, you make enough money to pay all those start-up expenses and still have money left over to keep!

Answer 2

The range is the set of y outputs. In this case, the range is the profit.

A negative profit means the company lost money. This is when the cost is larger than the revenue. For instance, if the revenue was $100 but the cost is $150, then the profit = revenue - cost = 100-150 = -50 to signal they lost $50.

Positive profit means the company made money.

The x intercept represents the break-even point. This is where the company neither loses money, nor gains money. The profit is $0 here.