The total expense of a boarding house are partly fixed and partly vari...
Let a = fixed cost and k = variable cost and n = number of boarders
total cost when 25 boarders c = 25*70 = 1750 i.e. 1750 = a + 25k
total cost when 50 boarders c = 50*60 = 3000 i.e. 3000 = a + 50k
solving above 2 eqns, 3000-1750 = 25k i.e. 1250 = 25k i.e. k = 50
therefore, substituting this value of k in either of above 2 eqns we get
a = 500 (a = 3000-50*50 = 500 or a = 1750 - 25*50 = 500)
so total cost when 100 boarders = c = a + 100k = 500 + 100*50 = 5500
so cost per head = 5500/100 = 55
The total expense of a boarding house are partly fixed and partly vari...
Given,
- Charge per head when there are 25 boarders = Rs.70
- Charge per head when there are 50 boarders = Rs.60
Let the fixed expenses be F and the variable expenses per head be V.
Then, we can write two equations based on the given information:
1. 25V + F = 25 x 70
2. 50V + F = 50 x 60
Solving the above equations, we get:
V = -10 (variable expenses decrease by Rs.10 for every additional boarder)
F = 950 (fixed expenses)
Now, we need to find the charge per head when there are 100 boarders.
Let C be the charge per head when there are 100 boarders.
Using the equation for variable expenses, we can write:
100V + F = 100C
Substituting the values of V and F, we get:
100(-10) + 950 = 100C
C = 55
Therefore, the charge per head when there are 100 boarders is Rs.55.