Bill Ding constructs quality homes. He figures that a house built on a particular lot should be sold for 373,000 if it has a floor space of 3000 square feet. A 4000 square foot house constructed on the same lot should be sold for 483000. The selling price is the sum of the construction cost, at a fixed number of dollars per square foot, and the cost of the lot. Figure out the number of dollars per square foot it costs to construct the house, and the cost of the lot
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OK.....we just need a linear equation here...I'm going to represent these numbers in thousands just to simplify the process. Let square feet be the"x" variable and total cost be the "y" variable.
So we have the points (3, 373) and (4, 483)....to write a linear equation, we need to find the slope of our line. We have
(483 - 373) / (4 - 3) = 110 (This actually is the cost per sq ft = $110)
So, using a point and the slope we have.....
y - 373 = 110 (x - 3)
y = 110x + 43 or
y = 110x + 43000
So, the lot cost must just be $43000
Chek this with the $483000 house...
y = 110(4000) + 43000
y = $483000
P.S.....I like the "Bill Ding" thing !!!