Question

Mary owns a small business. She spent $4,500 to get the business started. She has noticed that her monthly operating costs have been consistent. After five months, she has spent a total of $5,250 in start-up costs and monthly operating costs.

In a linear model of this situation, which of the following statements applies?
A.
An additional month of business operation is associated with an additional $500 in costs.
B.
An additional month of business operation is associated with an additional $750 in costs.
C.
An additional month of business operation is associated with an additional $150 in costs.
D.
An additional month of business operation is associated with an additional $50 in costs.

Answer 1

First, let’s find how much she spent on monthly operating costs.

5250-4500=750

Then, because all 5 months have been consistent, we can divide by 5

750/5=150

The answer is C