Question

Power Company A sells electricity for $0.04/kwhr. Company B sells for $0.03/kwhr plus a $100/month charge. If your business uses 4000 kwhr per month, which company should you use?

Answer 1

They should company A because when company B adds the extra charge you have to pay $220 and company A is only $160.

Answer 2

Power company A

Explanation:

We are given that

Power company A sells of 1 Kwhr electricity=$0.04

Power company B sells of 1 kw hr electricity=$0.03

Power company B additional monthly charge for electricity=$100

Total business uses electricity in 1 month=4000 kwhr

We have to find which company should used by me.

Power company A sells of 4000 kwhr electricity =
`0.04* 4000=`$160

Power company B sells of 4000 kwhr electricity=
`4000* 0.03`=$120

Power company B sells of 4000 kwhr electricity=120+100=$220

Hence, Power company A should used by me because it is cheaper than company B.