Final answer:
To determine the more economical option, compare the total costs of purchasing CDs from both companies.
Step-by-step explanation:
To determine if it would be more economical for the band to purchase CDs from this company, we need to compare the total cost of purchasing CDs from this company with the cost of purchasing CDs from the current company. Let's calculate the total cost for each:
Current company: The band expects to spend at least $850 on CDs. The current company charges $12.00 per CD with no set-up fee. So the total cost for the current company would be $12.00 multiplied by the number of CDs.
New company: The new company charges a set-up fee of $200 and $6.00 per CD. So the total cost for the new company would be the sum of the set-up fee and $6.00 multiplied by the number of CDs.
By comparing the total costs of the two companies, we can determine which one is more economical for the band. If the total cost of the new company is lower than the total cost of the current company, it would be more economical to purchase CDs from the new company.