ACT Math · Quadratic functions and equations

A company's revenue is modeled by R(x) = -5x² + 200x, where x is the number of items sold in hundreds. How many hundreds of items should…

A company's revenue is modeled by R(x)=−5x2+200xR(x) = -5x^2 + 200x, where xx is the number of items sold in hundreds. How many hundreds of items should be sold to maximize revenue?

Answer and explanation

Answer: G: 20

Revenue is a downward-opening parabola, so its maximum is at the vertex: x=−b2a=−2002(−5)=−200−10=20x=-\frac{b}{2a}=-\frac{200}{2(-5)}=\frac{-200}{-10}=20 hundred items, choice G. The maximum revenue is R(20)=−5(400)+200(20)=−2000+4000=2000R(20)=-5(400)+200(20)=-2000+4000=2000. Choice F (1010) is half the correct value, where R=1500R=1500. Choice H (4040) doubles it, where R=0R=0 (−8000+8000-8000+8000), which is the other zero of the revenue function. Choice J (100100) gives a large negative revenue. The vertex lies exactly halfway between the zeros x=0x=0 and x=40x=40. Reread the question to make sure the answer is in hundreds of items, not items.

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