Solve Problems Using Systems of Linear Equations
-An-Mei Owns a Business

question 169

Multiple Choice

Solve Problems Using Systems of Linear Equations
-An-Mei owns a business making and selling jackets. She has a fixed cost of $\$ 4500$ . It costs $\$ 85$ to produce each jacket. The selling price is $\$ 115$ per jacket. Let $x$ represent the number of jackets produced and sold and write the cost function, $C$ , and revenue function, $R$ .

• A) \(C ( x ) = 85 x + 4500\)
• \(R ( x ) = 115 x\)
• B) \(C ( x ) = 85 + 115 x\)
• \(R ( x ) = 4500 x\)
• C) \(C ( x ) = 85 + 4500 x\)
• \(R ( x ) = 115\)
• D) \(C ( x ) = 85 x + 4500 x\)
• \(R ( x ) = 115 x\)

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Definitions:

Disposable Income

Funds available to households for saving and spending once income taxes are deducted.

APC

Average Propensity to Consume, which is the fraction of income spent on consumption.

Gross Investment

The total amount of capital expenditure a company spends on maintaining and increasing the scope of its operations.

Net Investment

The total spending on new fixed investment minus depreciation on existing physical assets.