Calculate the average cost per unit used

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Reference no: EM131085919

In the month of June, Triem used 2,500 units of electricity at £0.09 per unit, plus a further 1,400 units at £0.05 per unit. In addition, she paid a standing charge. The total of the electricity bill for March was £319.

(a) Calculate the standing charge.

(b) Taking into account the cost of units and the standing charge, calculate the average cost per unit used.

(c) Taking into account only the cost of units, calculate the average cost per unit used.

Chres bought 120 packs from Triem at £4.98 per pack. Triem issued an invoice for these items and allowed a trade discount of £25.

(d) Calculate

(i) the percentage discount allowed

(ii) the final total on the invoice.

Triem offered a further discount of 2¼% on the final invoice total for payment within 14 days.

Chres pays within 14 days.

(e) Calculate the amount of this discount.

Reference no: EM131085919

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