Three electricity companies sell electricity as ‘units of electricity’. Their charges are shown below: Company A: 25 cents per unit. Company B: $20 per quarter plus 20 cents per unit. Company C: $40 per quarter plus 10 cents per unit. A 2 bedroom house is using, on an average, 400 units per quarter of a year. Work out what each company would charge and state which company offers the best value for money in the case.
Answers
Given : Three electricity companies sell electricity as ‘units of electricity’. Their charges are shown below:
Company A: 25 cents per unit.
Company B: $20 per quarter plus 20 cents per unit.
Company C: $40 per quarter plus 10 cents per unit.
A 2 bedroom house is using, on an average, 400 units per quarter of a year.
To Find : what each company would charge and state which company offers the best value for money in the case.
Solution:
Company A: 25 cents per unit.
400 units per quarter of a year
Cost = 400 x 25 cents
= 400 x 25/100 $
= 100 $
Company B: $20 per quarter plus 20 cents per unit.
20 + 400 x 20/100
20 + 80
= 100 $
Company C: $40 per quarter plus 10 cents per unit.
40 + 400 x 10/100
= 40 + 40
= 80 $
Company Charges in $
A 100
B 100
C 80
company C offers the best value for money in the case.
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