SOLUTION: Each month a gas station sells x gallons of gas at $2.99 per gallon. The cost to the owner of the gas station for each gallon of gas is $1.99 and the monthly fixed coast for runnin

Algebra ->  Human-and-algebraic-language -> SOLUTION: Each month a gas station sells x gallons of gas at $2.99 per gallon. The cost to the owner of the gas station for each gallon of gas is $1.99 and the monthly fixed coast for runnin      Log On


   

Question 577070: Each month a gas station sells x gallons of gas at $2.99 per gallon. The cost to the owner of the gas station for each gallon of gas is $1.99 and the monthly fixed coast for running the gas station is $27,000. Write the cost function of the number of gallons sold.
I've tried f(c)=2.99x+27000 but get stuck in the cost of the gas station for each gallon. I also wanted to put 2.99(x+1.99)^2+27000 but I'm not sure if it's correct. Please help
Answer by KMST(5398) About Me  (Show Source):
You can put this solution on YOUR website!
Each gallon costs the owner of the gas station $1.99. So the gas that the gas station buys and sells each month costs the owner $1.99x.
Other (fixed) costs of operating the gas station add up to $27,000.
The amount the owner spends each month is the sum of those two amounts. The cost, in $, is
highlight%28C%28x%29=1.99x%2B27000%29
That is the cost function.
The problem does not ask, but selling x gallons generates
$2.99x.
Is the gas station operating at a loss?
If the amount of money collected does not match or surpass the cost, the owner is losing money. That's what would happen if
2.99x%3C1.99x%2B27000 --> 2.99x-1.99x=27000 --> x=27000
If that gas station does not sell 27,000 gallons of gas each month, it is losing money.