Let q1 represents client visits and q2 represents hours of o

Let q1 represents client visits and q2 represents hours of operations. The electricity cost for Blissful Spa depends on both client-visits and the hours of operations and its cost formula is $380 + $0.10q1 + $1.80 q2. If the actual number of client visits is 780 and the salon was open for 180 hours during the month, the flexible budget amount for electricity is:

A) $782

B )$818

C) $1,862

D) $1,802

Solution

A) $782

Electricity cost = $380 + $0.10q1 + $1.80 q2

Electricity cost = $380 + ($0.10 x 780) + ($1.80 x 180) = $782