Question

Each month, a local bakery pays $0.75 per square foot to lease 500 square feet of space in a building. The bakery must also pay a 2.5% of the total sales to cover the security of the building. Write an equation that could be used to find C, the total cost of the lease for a month with a total amount of sales of d dollars.

Answer 1

`C=375+0.025d`

Explanation:

Given:

'C' represent total cost of lease. 'd' represents cost of sales in dollars.

Cost of 1 square foot of building = $0.75

Total area of the building = 500 square feet.

Sales tax on the total sales = 2.5%

Now, cost of 500 square feet area = Cost of 1 square foot × Total area

Cost of 500 square feet area =
`0.75* 500=\$375`

Now, sales tax is 2.5 of total sales 'd'. This gives,

Sales tax =
`2.5\%* d=(2.5)/(100)d=0.025d`

Now, total cost is the sum of least amount and total sales tax.

Total cost = Least amount + Sales tax

⇒
`C = 375+0.025d`