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Nezavi [6.7K]
3 years ago
15

Their installation fee is waived since I'm a current customer (now you know I made this up) but has a monthly fee of $60. Then I

call Direct TV whose monthly fee is only $40, but I have to pay a $100 installation fee. My question is, at what point?
Business
1 answer:
mamaluj [8]3 years ago
4 0

Answer:

At 5th month, the two options are equal

Explanation:

I think your question is missed of key information, allow me to add in and hope it will fit the original one.  

<em> My question is, at what point is my TOTAL cost the same for each option </em>

My answer:

Let n is is the number of months.

Given that:

  • Their installation fee is waived since I'm a current customer (now you know I made this up) but has a monthly fee of $60.

<=> The total fee can be modeled in this equation: 0 + 60n

  • Direct TV whose monthly fee is only $40, but I have to pay a $100 installation fee

<=> The total fee can be modeled in this equation: 100 + 40n

To find the point that make TOTAL cost the same for each option, we set the two options equal:

<=> 0 + 60n  = 100 + 40n

<=> 20n = 100

<=> n = 5 months

So at 5th month, the two options are equal

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Answer:

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General Journal Entries

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Debit Web Servers $12,000

Credit Common Stock $25,600

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Credit Cash $4,800

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