A company plans to sell bicycle helmets for \$26 each. The company's business manager estimates that the cost, \( y \), of making \( x \) helmets is a quadratic function with a \( \square y \)-intercept of 8,400 and a vertex of \( (500,15,900) \). \( x= \) number of helmets \( y= \) amount in dollars How many helmets must the company make and sell to break even? \( \square \) \( X \Rightarrow 600 \) helmets COMPLETE How much will it cost the company to make 600 helmets? \$ \( \square \) DONE Which system models this situation? \[ \begin{array}{l} y=26 x \text { and } y=8,400(x-500)^{2}+15,900 \\ y=26 x \text { and } y=-0.030(x-500)^{2}+15,900 \end{array} \]
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The Deep Dive
To break even, the company’s revenue must equal its cost. Revenue from selling \( x \) helmets at $26 each is given by \( R = 26x \). The cost function, being a quadratic, can be expressed as \( y = a(x - 500)^2 + 15,900 \). Given the \( y \)-intercept of 8,400, you can find \( a \) and set up the equation \( 26x = a(x - 500)^2 + 15,900 \) to solve for \( x \). To find the cost for making 600 helmets, simply plug in \( x = 600 \) into the cost function. Since the \( y \)-intercept is 8,400, the function can be modeled as \( y = a(x - 500)^2 + 15,900 \). Solving for \( a \) using the provided points will yield a quadratic function to calculate the total cost. To find additional insight, consider that historically, businesses used basic algebra to track revenues and costs, evolving into complex models that now include quadratic equations. Today, businesses benefit from software that runs simulations and provides predictive analytics, enhancing efficiency in understanding costs versus revenues. In the real world, companies often overlook fixed costs when budgeting or forecasting. Remember, it’s not just about variable costs! Ensuring you incorporate all costs—like rent, staff salaries, and utilities—alongside your production costs will help you avoid common pitfalls in financial planning.
