Question

the function $f(x)=\frac{80,000 + 0.2x}{x}$ yields the average cost in dollars for a company to produce $x$ copies of a comic book. which statement best fits the situation modeled by the function?\
\
\bigcirc the company earns 20\\% of the issue price as profit from each copy sold.\
\bigcirc the company earns 20 cents as profit from each copy sold.\
\bigcirc the company spends 20\\% of the issue price on materials to produce each copy.\
\bigcirc the company spends 20 cents on materials to produce each copy.

Explanation:

Step1: Split the average cost function

$f(x)=\frac{80,000 + 0.2x}{x} = \frac{80,000}{x} + \frac{0.2x}{x} = \frac{80,000}{x} + 0.2$

Step2: Interpret each cost component

The term $\frac{80,000}{x}$ is the average fixed cost (spread over $x$ units), and the constant term $0.2$ is the variable cost per unit, which equals $0.2$ dollars or 20 cents per copy. This represents the per-unit cost for materials/variable production expenses.

Answer:

The company spends 20 cents on materials to produce each copy.