Question

Paul is going to have the exterior of his home painted. Painting USA charges $75.00 to come out and evaluate the house plus $25.00 per hour of labor. Upscale Home Painting does not charge to evaluate the house. However, they charge $40.00 per hour. If it takes 25 hours to paint Paul’s house, the most cost effective company will be

Answer 1

Given:$75
25 hours

Painting USA : Fixed cost: $75 ; Variable Cost: $25x
Total Cost = 75 + 25(25) = 75 + 625 = 700

Upscale Home Painting: No Fixed Cost ; Variable Cost : $40x
Total Cost = 40(25) = 1,000

The most cost effective company will be Painting USA whose charge will amount to $700.

Answer 2

The most cost effective company will be Painting USA that charge $700 to paint Paul house .

Explanation:

As given

Paul is going to have the exterior of his home painted.

Painting USA charges $75.00 to come out and evaluate the house plus $25.00 per hour of labor.

If it takes 25 hours to paint Paul’s house.

Total amount charge by Painting USA = Painting USA charges for come out and evaluate the house + Cost of per hour of labor × Total hours take to paint Paul house .

Total amount charge by Painting USA = 75 + 25 × 25

= 75 + 625

= $ 700

As given

Upscale Home Painting does not charge to evaluate the house. However, they charge $40.00 per hour.

Total amount charge by Upscale Home Painting = Cost of per hour of labor × Total hours take to paint Paul house

= 40 × 25

= $ 1000

Therefore the most cost effective company will be Painting USA that charge $700 to paint Paul house .