Question

Big Bucks Bank charges a monthly service fee and a per-check fee, and its total monthly fees as they relate to the number of checks written per month is shown by the graph below. Which of these is the fee structure of Big Bucks Bank? A. A monthly service fee of $1.00 and a per-check fee of $0.50 B. A monthly service fee of $0.50 and a per-check fee of $1.00 C. A monthly service fee of $0.50 and a per-check fee of $0.50 D. A monthly service fee of $1.00 and a per-check fee of $1.00

Answer 1

ANSWER!

A monthly service fee of $0.50 and a per-check fee of $0.50.

Answer 2

Given that "Big Bucks Bank charges a monthly service fee and a per-check fee, and its total monthly fees as they relate to the number of checks written per month is shown by the graph below." But the related graph is missing so I will create a similar graph to explain how to find the answer.

Monthly service fee is like the fixed cost which is basically the y-value where graph crosses the y-axis.

From graph we see that graph crosses at 1 on y-axis so monthly service fee according to sample graph = $1

Now the per check fee works like slope of the line.

To find the slope we need two points so find any two points on the graph of line. I'm using points (1,0) and (4,3)

now slope can be found using formula

$slope=m=\frac{y_2-y_1}{x_2-x_1}=\frac{3-1}{4-0}=\frac{2}{4}=0.5$

Hence per check fee will be $0.5 as per attached sample graph.

You can use same technique for the original graph given with this question.