Question 171·Hard·Nonlinear Functions
A company's revenue (in thousands of dollars) months after a new product is released is modeled by
The company breaks even when its revenue first reaches $350,000. Approximately how many months after the release does the company break even?
For exponential models where the variable appears both inside and outside the exponent, start by carefully matching the word problem to the function’s units (here, thousands of dollars) and set the function equal to the target value. Simplify the equation, but recognize that it usually cannot be solved exactly with basic algebra, so use a calculator to plug in the answer choices or graph the function and a horizontal line at the target value. Finally, use key wording like "first reaches" or "at least" to decide whether you should take the smallest or largest value of the variable that fits the condition.
Hints
Match the break-even amount to the function's units
The function is measured in thousands of dollars. If the company breaks even at \R(t)$ equal to in the equation?
Form and simplify the key equation
Write an equation using and your target revenue from Hint 1. Then subtract 200 from both sides and divide by 50 to simplify before deciding how to solve.
Choose a practical solving method
After simplifying, notice that appears both outside and inside the exponential. Instead of trying to solve exactly, plug in each answer choice for (or graph the function) and compare the resulting revenue to your target.
Use "first reaches" to decide among close values
When you compare the values of for the choices, focus on which ones are below or above the target. Because the revenue is increasing in this time range, which smallest makes approximately equal to your target revenue?
Desmos Guide
Enter the revenue function and the target line
In Desmos, enter the revenue model as y1 = 50x*e^(-0.1x) + 200. Then enter the constant target revenue as y2 = 350 to represent \$350,000 dollars.
Locate the first intersection point
Adjust the viewing window so you can see from about 0 to 10 and from about 200 to 400. Look for where the curve first crosses the horizontal line as increases from 0, and tap that intersection to see its -coordinate.
Match the intersection to an answer choice
Note the -value of that first intersection (in months) and choose the answer option whose value of is closest to that -coordinate.
Step-by-step Explanation
Translate the break-even condition into the equation
The function gives revenue in thousands of dollars, so means a revenue of $350,000 dollars.
Break-even happens when the revenue first reaches $350,000, so we need to solve
Using the given model,
Simplify the equation as much as possible
Start with
Subtract 200 from both sides:
Divide both sides by 50:
Here appears both outside and inside the exponential, so there is no simple algebraic way (on the SAT) to isolate exactly.
Decide on a method: use answer choices (or a graph) to approximate
Because we cannot easily solve exactly, use the answer choices as guesses and plug them into the original function
with your calculator.
We are looking for:
- A value of for which is about (thousand dollars), and
- The smallest such , because the question asks when the revenue first reaches $350,000.
Note that for , the revenue is increasing, and all the answer choices are less than 10, so once passes 350, it will stay above 350 in this range.
Evaluate the answer choices and choose the earliest time
Now test the answer choices in (use your calculator for the exponentials):
- For :
Using gives
or about \350,000.
- For :
Using gives
or about \350,000.
So the break-even time is between and months. Check the remaining options in this range:
- For :
Using gives
or about \$350,000.
- For :
Using gives
or about \350,000 and much later.
The first time the revenue reaches about \t \approx 4.94.9$.