Question

Penny bought a juice squeezer for $10. She can make a bottle of orange juice for a cost of $0.75, and she sells her orange juice for $1.85 per bottle.
Which of the following graphs best illustrates Penny’s situation?
I.A graph has bottles on the x-axis and cost (dollars) on the y-axis. The cost line goes through (0, 10) and (3, 12.5) and the revenue line goes through (0, 0) and (4, 7.5). The cost and revenue lines intersect around (9, 17.5).
II.A graph has bottles on the x-axis and cost (dollars) on the y-axis. The cost line goes through (0, 10) and (3, 12.5) and the revenue line goes through (0, 10) and (4, 17.5). The cost and revenue lines intersect around (0, 10).
III.A graph has bottles on the x-axis and cost (dollars) on the y-axis. The cost line goes through (0, 10) and (13, 9) and the revenue line goes through (0, 0) and (4, 7.5). The cost and revenue lines intersect around (5, 9.5).
IV.A graph has bottles on the x-axis and cost (dollars) on the y-axis. The cost line goes through (0, 10) and (8, 25) and the revenue line goes through (0, 0) and (10, 7.5).


a.
I
b.
II
c.
III
d.
IV



Please select the best answer from the choices provided


A
B
C
D

Answer 1

A

Graph I is the only one with the fixed cost at $10 (cost line through (0,10)) and the revenue line through the origin (no fixed revenue). It shows revenue increasing faster than cost, so it matches Penny’s situation.