Technical Engineering presently leases a copying machine on a monthly basis. The lease agreement requires a fixed fee each month in addition to a charge per copy. Technical Engineering made 2400 copies and paid a total of $162 in rent in September and in October they paid $195 for 3500 copies. Determine Technical Engineering's variable cost per copy.
A) $0.06
B) $0.04
C) $0.03
D) $0.01

Question

Quizplus · Accepted Answer

Let's assume that the fixed fee per month is X dollars and the variable cost per copy is Y dollars.

From the problem, we know that:

September rent = fixed fee + (2400 * Y) = X + 2400Y = 162
October rent = fixed fee + (3500 * Y) = X + 3500Y = 195

We can then solve for X and Y using simultaneous equations:

X + 2400Y = 162
X + 3500Y = 195

Subtracting the first equation from the second, we get:

1100Y = 33

Y = 0.03

Substituting Y back into either equation, we can solve for X:

X + 2400(0.03) = 162

X = 78

Therefore, the fixed fee is $78 per month and the variable cost per copy is $0.03.

The correct choice is C.

Technical Engineering Presently Leases a Copying Machine on a Monthly