A tile factory earns money by charging a flat fee for delivery and a sales price of $0.25 per tile. One customer pays a total of $3,000 for 10,000 tiles. The equation $y-3,000=0.25(x-10,000)$ models the revenue of the tile factory, where $x$ is the number of tiles and $y$ is the total cost to the customer.
The problem provides the revenue model for a tile factory in the form of a linear equation: \(y - 3,000 = 0.25(x - 10,000)\), where \(x\) represents the number of tiles sold and \(y\) represents the total cost to the customer. We are told the factory charges a variable price per tile (represented by the slope) and a fixed, flat fee for delivery (represented by the y-intercept). We need to determine the functional form \(f(x)\) for the revenue and identify the flat fee.
To find the function \(f(x)\), we convert the given point-slope form equation \(y - 3,000 = 0.25(x - 10,000)\) into the slope-intercept form, \(y = mx + b\), where \(m\) is the rate per tile and \(b\) is the flat fee.
Expanding the equation:
\[y - 3,000 = 0.25x - 2,500\]
Adding 3,000 to both sides:
\[y = 0.25x - 2,500 + 3,000\]
\[y = 0.25x + 500\]
Thus, the function describing the total cost as a function of the number of tiles \(x\) is \(f(x) = 0.25x + 500\).
The flat fee for delivery is the value of the function when no tiles are sold, i.e., when \(x = 0\). From the slope-intercept form \(f(x) = 0.25x + 500\), we see that:
\[f(0) = 0.25(0) + 500 = 500\]
Therefore, the flat fee for delivery is \(\$500\).
Understanding linear models is essential in business for pricing strategies. For example, a catering company might charge a fixed venue rental fee plus a per-person cost for food. If a venue charges a \$1,000 booking fee and \$20 per guest, the total cost \(C\) for \(n\) guests can be modeled by \(C(n) = 20n + 1000\). Recognizing the slope (20) and the y-intercept (1000) allows the business to predict revenue and costs for varying event sizes, helping them plan their logistics and profitability.