Solve the Problem $R ( x ) = \frac { 1040 x ^ { 2 } } { x ^ { 2 } + 4 }$

question 25

Multiple Choice

Solve the problem.
-A publishing company estimates the revenue from the sale of a popular book by the rational function $R ( x ) = \frac { 1040 x ^ { 2 } } { x ^ { 2 } + 4 }$ where $x$ is the number of years since publication and $R ( x )$ is the total revenue in millions of dollars. Find the total revenue at the end of the second year.

• A) \(\$ 560\) million
• B) \(\$ 520\) million
• C) \(\$ 550\) million
• D) \(\$ 590\) million

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Definitions:

Depreciating

The process of allocating the cost of a tangible asset over its useful life, reflecting a decrease in its value over time.

Accounts Receivable

Amounts owed to a business by customers for goods or services delivered but not yet paid for, represented as a current asset on the balance sheet.

Allowance Method

A method in accounting used to estimate bad debts expense by anticipating which accounts receivable may not be collected.

Balance Sheet Accounts

Accounts reported on the balance sheet, representing the company's assets, liabilities, and equity at a specific point in time.