The cost of repairs for machine A if it is kept for three years is $1,200.
In Mathematics and Geometry, the slope-intercept form of the equation of a straight line refers to the general equation of a linear function and it is represented by this mathematical equation;
y = mx + b
Where:
- m represents the slope.
- x and y are the points.
- b represents the y-intercept or initial value.
Since Machine A has a life of two years, costs $1500 initially, and then $400 per year in maintenance costs, an equation that models the total cost is given by;
y = 400x + 1500
For a period of three years, the cost of repairs for machine A can be calculated as follows;
Cost of repairs = Maintenance cost × Number of years
Cost of repairs = 400 × 3
Cost of repairs = $1,200.
Complete Question:
You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years, costs $1500 initially, and then $400 per year in maintenance costs. Machine B costs $2000 initially, has a life of three years, and requires $300 in annual maintenance costs. Either machine must be replaced at the end of its life with an equivalent machine.
What is the cost of repairs for machine A if you keep it for three years?