1. **State the problem:** We have a cost function $$C(x) = 0.2x^2 - 10x + 200$$ where $x$ is the number of drinks sold. We want to find:
(a) The number of drinks $x$ that minimizes the cost.
(b) The minimum cost value.
2. **Formula and rules:** For a quadratic function $$C(x) = ax^2 + bx + c$$ with $a > 0$, the minimum occurs at $$x = -\frac{b}{2a}$$.
3. **Find the number of drinks to minimize cost:**
Given $$a = 0.2$$ and $$b = -10$$,
$$x = -\frac{-10}{2 \times 0.2} = \frac{10}{0.4}$$
$$x = 25$$
4. **Calculate the minimum cost:** Substitute $x=25$ into the cost function:
$$C(25) = 0.2(25)^2 - 10(25) + 200$$
$$= 0.2 \times 625 - 250 + 200$$
$$= 125 - 250 + 200$$
$$= 75$$
**Final answers:**
(a) The number of drinks to minimize cost is $25$.
(b) The minimum cost is $75$.
Cost Minimization 380B04
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