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The function f(x)=600+2x over x yields the average cost in dollars for a company to produce x calendars. Which statement best fits the situation modeled by the function?

AThe company spends $600 on a new computer and printer before beginning the project.
BThe company takes 600 photos before selecting which ones to use for its calendars.
CThe company expects to sell 600 calendars each month.
DThe company will sell the calendars for $6.00 each.

Verified Answer :

Hagrid

The function f(x)=600+2x over x yields the average cost in dollars for a company to produce x calendars. The statement best fits the situation modeled by the function "The company spends $600 on a new computer and printer before beginning the project.". The answer is letter A.

Answer:

The correct option is a.

Step-by-step explanation:

The average cost function is

\(f(x)=\frac{600+2x}{x}\)

Where x is the number of calendars produced.

The average cost formula is

\(AC=\frac{\text{Total Cost}}{\text{Number of items}}\)

Therefore the total cost is defined b the function

\(g(x)=600+2x\)

Here 600 is the initial cost and the cost each unit is 2.

Initial cost is the fixed cost which occurs at zero level of productivity.

The company spends $600 on a new computer and printer before beginning the project. The option (a) is correct.

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