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A technician charges a flat fee of $15 for a service call. In addition to the flat fee, the technician...

GMAT Algebra : (Alg) Questions

Source: Prism
Algebra
Linear functions
EASY
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A technician charges a flat fee of \(\$15\) for a service call. In addition to the flat fee, the technician charges \(\$40\) per hour of labor. Based on this pricing model, what is the total charge, in dollars, for a service call that requires \(2.5\) hours of labor?

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Solution

1. TRANSLATE the pricing information

  • Given information:
    • Flat fee (fixed charge): \(\$15\)
    • Labor rate (variable charge): \(\$40\) per hour
    • Time worked: \(2.5\) hours
    • Find: Total charge

2. INFER the cost structure

  • This is a linear cost model with two parts:
    • Fixed cost (flat fee) that doesn't change
    • Variable cost (labor) that depends on time worked
  • Strategy: Calculate variable cost first, then add to fixed cost

3. Calculate the labor cost

  • Labor cost = Rate × Time
  • Labor cost = \(\$40/\mathrm{hour} \times 2.5\, \mathrm{hours} = \$100\)

4. SIMPLIFY to find total charge

  • Total charge = Fixed cost + Variable cost
  • Total charge = \(\$15 + \$100 = \$115\)

Answer: \(\$115\) (or 115)


Why Students Usually Falter on This Problem

Most Common Error Path:

Weak TRANSLATE skills: Students misunderstand the cost structure and think they need to add the hourly rate directly to the flat fee, calculating \(\$15 + \$40 = \$55\), then getting confused about what to do with the \(2.5\) hours.

This leads to confusion and guessing since \(\$55\) doesn't seem like a complete answer.

Second Most Common Error:

Inadequate SIMPLIFY execution: Students correctly identify that they need to calculate \(\$40 \times 2.5 + \$15\), but make arithmetic errors. Common mistakes include calculating \(\$40 \times 2.5 = \$80\) (instead of \(\$100\)) or making addition errors in the final step.

This can lead them to incorrect answers like \(\$95\) instead of \(\$115\).

The Bottom Line:

This problem tests whether students can break down a real-world pricing model into its mathematical components and execute the calculations correctly. The key insight is recognizing that service pricing often combines fixed and variable costs.

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