Question

question 7:a water company offers industrial users two different packages. the users can either pay 82 cents per thousand gallons, or pay a fixed amount of $1,476,000 for unlimited water usage for one year. how much water does an industrial user need to use in one year for the fixed amount package to be the less expensive option?a. over 1,800 thousand gallonsb. over 18,000,000 thousand gallonsc. over 1,800,000 thousand gallonsd. over 18,000 thousand gallons

Explanation:

Step1: Set up cost equality

Let $x$ = thousand gallons used. Set variable cost equal to fixed cost:
$$0.82x = 1476000$$

Step2: Solve for break-even $x$

Isolate $x$ by dividing both sides by 0.82:
$$x = \frac{1476000}{0.82}$$
$$x = 1800000$$

Step3: Analyze cost advantage

When usage exceeds the break-even point, the fixed package becomes cheaper.

Answer:

C. over 1,800,000 thousand gallons