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

Answer:

$C=375+0.025d$

Step-by-step 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 = $0.75\times 500=\ 375$

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

Sales tax = $2.5\%\times d=\frac{2.5}{100}d=0.025d$

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

Total cost = Least amount + Sales tax

⇒ $C = 375+0.025d$