Question

q. power company a sells electricity for $0.04/kwh. company b sells for $0.03/kwh plus a $100/month charge. if your business uses 4,000 kwh per month, which company should you use? a. company a b. company b c. both company a and b cost the same. d. there isnt enough information. hint

Explanation:

Step1: Calculate cost for Company A

Cost for Company A = Rate × Consumption
Cost for Company A = \(0.04\times4000=\$160\)

Step2: Calculate cost for Company B

Cost for Company B = (Rate × Consumption)+Fixed - charge
Cost for Company B=\((0.03\times4000)+ 100\)
First, calculate \(0.03\times4000 = 120\)
Then, \(120 + 100=\$220\)

Answer:

A. Company A