Q. 49

Question

In March 2011, Peoples Energy had the following rate schedule for natural gas usage in single- family residences:

Monthly service charge- \(18.95

Per therm service charge

1st 50 therms- \)0.33372/therm

Over 50 therms- \(0.12360/therm

Gas charge- \)0.5038/therm

(a) What is the charge for using 50 therms in a month?

(b) What is the charge for using 500 therms in a month?

(c) Develop a model that relates the monthly charge C for x therms of gas.

(d) Graph the function found in part (c)

Step-by-Step Solution

Verified
Answer

(a) The charge for using 50 therms in a month is $60.826

(b) The charge for using 500 therms in a month is $343.156

(c) The model that relates the monthly charge C for x therms is C(x)=0.6274x+29.456. x<500.83752x+18.95, x>50

(d) The graph of the function found in part (c) is 



1Part (a) Step 1. Given

Monthly service charge- $18.95

Per therm service charge

1st 50 therms- $0.33372/therm

Over 50 therms- $0.12360/therm

Gas charge- $0.5038/therm

2Part (a) Step 2. Find the service charge and gas charge

The service charge for the first 50 therms=$0.33372/therm

The total service charge for the first 50 therms =0.33372×50

=$16.686

Gas charge for 50 therms =$0.5038/therm

                                            =0.5038×50=$25.19

3Part (a) Step 3. Add the terms found above.

Monthly service charge=$18.95

Charge for using 50 therms in a month=16.686+25.19+18.95

=$60.826

4Part (b) Step 1. Find the service charge and gas charge

Referring to part (a), the service charge for using first 50 therms is $16.686

The service charge for next 450 therms is given by,

=$0.12360/therm=0.12360×450=$55.62

Gas charge=0.5038/therm

                 =0.5038×500=$251.9

5Part (b) Step 2. Find the total charge

Monthly service charge =$18.95

Total charge for using 500 therms=16.686+55.62+251.9+18.95

=$343.156

6Part (c) Step 1. To find the charges for therms

Monthly charge=$18.95

Referring to part (a) and (b), the service charge for first 50 therms is $16.686

And the service charge for (x-50) therms is =0.12360(x-50)

=0.12360x-6.18

Gas charge for x therms=0.5038x

7Part (c) Step 2. Find model C for x therms for x &#62; 50

For x<50, the total charge is given by

C(x)=18.95+16.686+0.12360x-6.18+0.5038x        =29.456+0.6274x

8Part (c) Step 3. Find the model for x &#62; 50

The total charge for x terms is given by,

C(x)=18.95+(0.33372+0.5038)x        =18.95+0.83752x

9Part (d) Step 4. Graph the function in part (c)

Graph the function C(x)=0.6274x+29.456. x<500.83752x+18.95, x>50