Solve the problem.
-The cost of owning a home includes both fixed costs and variable utility costs. Assume that it costs $5682 per month for mortgage and insurance payments and it costs an average of $1.35 per unit for Natural gas, electricity, and water usage. Determine a linear equation that computes the annual cost Of owning this home if x utility units are used.
A)y = -1.35x + 68,184
B)y = 1.35x + 5682
C)y = -1.35x + 5682
D)y = 1.35x + 68,184

Question

Quizplus · Accepted Answer

The annual cost of owning the home includes the fixed monthly costs ($5682) and the variable costs for utilities ($1.35 per unit). The fixed costs are $5682 per month, so annually this is $5682 * 12 = $68,184. The variable cost is $1.35 per unit of utility used, so the total annual cost is $68,184 (fixed) + $1.35x (variable), where x is the number of utility units used. Therefore, the correct equation is y = 1.35x + 68,184.

Solve the Problem. -The Cost of Owning a Home Includes Both Fixed Costs