Suppose a granola bar company estimates that its monthly cost is [tex]$C(x) = 500x^2 + 400x$[/tex] and its monthly revenue is [tex]$R(x) = -0.6x^3 + 800x^2 - 300x + 600$[/tex], where [tex][tex]$x$[/tex][/tex] is in thousands of granola bars sold. The profit is the difference between the revenue and the cost.

What is the profit function, [tex]$P(x)$[/tex]?

A. [tex]$P(x) = 0.6x^3 - 300x^2 + 700x - 600$[/tex]
B. [tex][tex]$P(x) = -0.6x^3 + 300x^2 - 700x + 600$[/tex][/tex]
C. [tex]$P(x) = 0.6x^3 + 300x^2 - 700x + 600$[/tex]
D. [tex]$P(x) = -0.6x^3 + 1300x^2 + 100x + 600$[/tex]



Answer :

To find the profit function [tex]\( P(x) \)[/tex] for the granola bar company, we need to subtract the given cost function [tex]\( C(x) \)[/tex] from the given revenue function [tex]\( R(x) \)[/tex]. Let's outline the steps and calculations involved.

1. Defining the cost function [tex]\( C(x) \)[/tex]:
[tex]\[ C(x) = 500x^2 + 400x \][/tex]

2. Defining the revenue function [tex]\( R(x) \)[/tex]:
[tex]\[ R(x) = -0.6x^3 + 800x^2 - 300x + 600 \][/tex]

3. Calculating the profit function [tex]\( P(x) \)[/tex]:
The profit function [tex]\( P(x) \)[/tex] is the difference between the revenue function and the cost function:
[tex]\[ P(x) = R(x) - C(x) \][/tex]

4. Substituting [tex]\( R(x) \)[/tex] and [tex]\( C(x) \)[/tex] into the profit function:
[tex]\[ P(x) = (-0.6x^3 + 800x^2 - 300x + 600) - (500x^2 + 400x) \][/tex]

5. Distributing the negative sign and combining like terms:
[tex]\[ P(x) = -0.6x^3 + 800x^2 - 300x + 600 - 500x^2 - 400x \][/tex]

6. Combining the [tex]\( x^2 \)[/tex] and [tex]\( x \)[/tex] terms:
[tex]\[ P(x) = -0.6x^3 + (800x^2 - 500x^2) + (-300x - 400x) + 600 \][/tex]

7. Simplifying the expression:
[tex]\[ P(x) = -0.6x^3 + 300x^2 - 700x + 600 \][/tex]

The profit function, [tex]\( P(x) \)[/tex], is:
[tex]\[ -0.6x^3 + 300x^2 - 700x + 600 \][/tex]

Therefore, the correct answer is:
[tex]\[ B. P(x) = -0.6 x^3 + 300 x^2 - 700 x + 600 \][/tex]

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