This is a Consumer and Insurance Question - Junior Cycle Business Studies - Question 4 - 2015

To calculate the total cost for both companies, we first need to calculate the total monthly charges including VAT.

Electric Saver Calculation:

• Standing Charge: €10.50

• Unit Rate: €0.1701 per unit for 400 units:

  $ext{Unit Cost} = 0.1701 imes 400 = €68.04$

• Subtotal: $ext{Subtotal} = €10.50 + €68.04 = €78.54$

• Discount: 15% on €78.54:

  $ext{Discount} = 0.15 imes 78.54 = €11.78$

• Subtotal after Discount:

  $ext{Discounted Subtotal} = €78.54 - €11.78 = €66.76$

• VAT: 13.5% on €66.76:

  $ext{VAT} = 0.135 imes 66.76 = €9.01$

• Total Cost for Electric Saver:

  $ext{Total} = €66.76 + €9.01 = €75.77$

Electric Power Calculation:

• Standing Charge: €10.90

• Unit Rate: €0.1715 per unit for 400 units:

  $ext{Unit Cost} = 0.1715 imes 400 = €68.60$

• Subtotal: $ext{Subtotal} = €10.90 + €68.60 = €79.50$

• Discount: 20% on €79.50:

  $ext{Discount} = 0.20 imes 79.50 = €15.90$

• Subtotal after Discount:

  $ext{Discounted Subtotal} = €79.50 - €15.90 = €63.60$

• VAT: 13.5% on €63.60:

  $ext{VAT} = 0.135 imes 63.60 = €8.58$

• Total Cost for Electric Power:

  $ext{Total} = €63.60 + €8.58 = €72.18$

Comparison:

• Electric Saver Total: €75.77
• Electric Power Total: €72.18

Conclusion: I would advise Brendan to choose Electric Power Company because it is cheaper by €3.59 per month.