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Firm A charges £24 up front then £0.60 for each kilometre. Firm B charges £39 up front then £0.35 for each kilometre. They cost the same at 60 kilometres. Which is cheaper for a 90 kilometre job?
AFirm A, because its up front charge is lower
BFirm A, because its rate per kilometre is lower
CNeither, the two charges stay level after 60
DFirm B, because its rate per kilometre is lower
Answer & Solution
Correct answer: D. Firm B, because its rate per kilometre is lower
1. At 90 kilometres, firm A costs 24 plus 0.60 times 90, which is 24 + 54, or £78.
2. Firm B costs 39 plus 0.35 times 90, which is 39 + 31.50, or £70.50.
3. Firm B is £7.50 cheaper at that distance.
4. Beyond the crossing point, the firm with the smaller charge per kilometre pulls ahead, and that is firm B at £0.35.
5. Option B states the reason correctly but names the wrong firm, since £0.60 is the larger rate.
_Source: OpenStax College Algebra (CC BY 4.0), Ch 4 "Linear Functions", section 4.2 Modeling with Linear Functions_
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