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Two alternatives and cost

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Two alternatives and cost

Published by Brilliant Ravens

Susan  has just bought a house on a half acre plot. Her current
problem is deciding how to cut the grass. One alternative is to hire someone
else to cut it. This would cost Sh. 1,400 each time. The other alternative Susan
is considering is buying a riding lawn-mower. The mower would cost Sh.
60,000 and have operating costs of Sh. 500 associated with each cutting of the
grass. Susan believes that the grass would have to be cut 20 times a year.
Required:
(i) How many grass cuttings would it take for the two alternatives to be
equal in cost? (4
marks)
(ii) How long would it take for the riding lawn-mower to pay for itself?
(3 marks)
(iii) What other factor(s) is important?

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