Question

John purchased 12372 kWh of electricity and 3568 CCF of natural gas in a year. The cost of electricity is 7.1 cents/kWh and that of natural gas is 1.5 dollars per CCF. Assuming that 1 CCF of natural gas has 100,000 BTUs and 1 kWh has 3412 BTUs, what is the average cost of 1 MM BTUs for John.

Answer 1

Answer:

A is correct option 15.6$

Explanation:

According to question,

Electricity purchased =12372 kwh

Cost of electricity = 7.1 cent/kwh =0.071dollar/kwh

Natural gas purchased = 3568 CCF

Cost of natural gas = 1.5 dollar/CCF

BTUs purchased per dollar

=((12372*3412)+(3568*100000))/((12372*0.071)+(3568*1.5))

=64042.8376 BTUs/ dollar

Now, cost of 1MMBTUs =1000000/64042.8376

= 15.6 dollar