SAT Math · Nonlinear functions · medium

A company's monthly revenue, in dollars, from selling x units of a product is modeled by R(x) = -5x² + 200x. How many units should the…

A company's monthly revenue, in dollars, from selling xx units of a product is modeled by R(x)=−5x2+200xR(x) = -5x^2 + 200x. How many units should the company sell to maximize revenue?

Answer and explanation

Answer: A: 20

The revenue function R(x)=−5x2+200xR(x) = -5x^2 + 200x is a downward-opening parabola, so its maximum is at the vertex. The vertex has x=−b2a=−2002(−5)=20x = -\frac{b}{2a} = -\frac{200}{2(-5)} = 20 units, choice A. The maximum revenue is R(20)=−2000+4000=2000R(20) = -2000 + 4000 = 2000 dollars. Choice B (40) is where revenue returns to zero, the other xx-intercept, so it is twice the vertex. Choice C (200) is the coefficient of xx. Choice D (10) comes from using −b4a-\frac{b}{4a} or dividing incorrectly. The question asks for the number of units, not the revenue.

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