In: Economics
A shop uses a water filter that costs $380 and it can filter 4000 pounds of water. Water that is not filtered costs $0.60 per pound to fix. The filter needs to be switched every six months. Based on the filter, how much money will the shop save with the filter in a year?
4000pounds of water will be filtered in six months by the water filter in six months so the filter will filter the water in year is 8000.
Cost of the filtering the water without the help water filter that the owner buyed is 0.6$ per pound
So the total cost of filtering water from outside help is
0.6×8000= 4800
And if the owner buys a water filter who's cost is 380 which filters the water in six months is 4000 and needs to be changed after six months so the owner will buy a new filter again so in year it will filter 4000+4000 = 8000
So in cost of 760$ the owner will get filtered water of 8000 pounds
Previously the show owner was paying 4800$ in year to get the same amount of quantity of filtered water
So will substract 760 from 4800 to find the savings in year which will be 4040$