8. An employer wants to purchase one cup of coffee for each of their 214 employees. A cup of coffee costs $3.95. To estimate the total cost, the employer plans to round the number of employees to the nearest ten and round the cost of the coffee to the nearest dollar. Which of the following prices represents the estimated total cost for the coffee?
Answer: B
The estimated total cost for the coffee is $840.00.
To estimate the total cost, the employer rounds the number of employees, 214, to 210 and the cost of coffee, $3.95, to $4.00. Multiplying these rounded figures (210 employees × $4.00 per cup) gives an estimated total cost of $840.00.
A) $845.30
This option is incorrect because it does not reflect the rounding of both the number of employees and the cost of coffee. If the employer did not round the cost of coffee up to $4.00, the total would be higher than the estimate, but the rounding process leads to a lower estimate.
B) $840.00
This option is correct as it accurately reflects the estimated total cost. By rounding the number of employees to 210 and the cost of coffee to $4.00, the calculation (210 × 4) results in $840.00, which is the proper estimation process.
C) $829.50
This option is incorrect because it suggests a total that does not align with the rounding strategy described. The calculation would imply using a non-rounded figure for the cost of coffee, which does not follow the employer's estimation plan.
D) $850.00
This option is also incorrect as it overestimates the total cost. This figure likely results from rounding the cost of coffee up to $4.00 and mistakenly rounding the number of employees to the next higher ten, which is not the intended method of estimation.
Conclusion
The correct estimate of $840.00 arises from the appropriate rounding of both the number of employees and the price of coffee. All other options fail to follow the specified rounding rules, leading to inaccurate total cost calculations. Thus, option B is the only choice that accurately represents the employer's estimation strategy.