A printing business employs 35 people. The employer offers the employees an insurance package that costs the company $2,170. The employer has been investigating various plans. A new plan would cost $59 per employee plus a one-time $70 sign up fee (not per employee). Is the new plan a better deal?

Question

Mathematics

Justin Shepherd

20 August, 03:02

A printing business employs 35 people. The employer offers the employees an insurance package that costs the company $2,170. The employer has been investigating various plans. A new plan would cost $59 per employee plus a one-time $70 sign up fee (not per employee). Is the new plan a better deal?

+5

Answers (2)

Know the Answer?

Cookie Dough · Answer 1

Answer:yes

Snow White · Answer 2

New plan better

Step-by-step explanation:

We need to compare the cost of the first plan, $2170, to the cost of this new plan. Fot this, we need to find the cost of the new plan. We need an equation for this.

For the new plan there is a fixed cost of $70, i. e, no matter how many employees there will be, the firm would have to pay $70. Then, if it has 1 employee, would face a cost of $70 + $59, where this $59 is the cost per employee. If the firm has 2 employees the cost will be $70 + $59 + $59 = $70 + 2 * ($59). If it hires 3 employees: $70 + $59 + $59 + $59 = $70 + 3 * ($59). And so forth for 4, 5, 6 employees.

Then, for the 35 employees the firm has the cost is:

$70 + 35 * ($59) = $2135

As $2135 < $2170, this new plan is better