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?

Rationale

The estimated total cost for the coffee is $840.00.

The employer plans to round the number of employees to the nearest ten and the cost of the coffee to the nearest dollar for estimation. Thus, 214 employees round to 210 and $3.95 rounds to $4.00. Multiplying these rounded values gives an estimated total cost of $840.00.

A ($845.30) YOUR ANSWER

This choice might be the result of rounding only the number of employees (214 to 210) but not the cost of coffee. Multiplying 210 employees with the exact cost of coffee ($3.95) results in $829.50, not $845.30. Therefore, this option is incorrect.

B ($840.00) CORRECT

This choice correctly represents the product of the rounded number of employees (210) and the rounded cost of coffee ($4.00). Hence, this is the correct answer.

C ($829.50) YOUR ANSWER

This choice appears to be the result of an error in rounding. It seems the number of employees was rounded correctly to 210 but the cost of the coffee was not rounded. Multiplying 210 employees with the exact cost of coffee ($3.95) results in $829.50. However, the employer wanted to round both values for estimation, so this option is incorrect.

D ($850.00) YOUR ANSWER

This choice seems to be the result of an overestimate. Neither the rounded number of employees (210) nor the rounded cost of coffee ($4.00) would result in this total. Therefore, this option is incorrect.

Conclusion

In this situation, the employer wants to estimate the total cost by rounding both the number of employees and the cost of coffee. By rounding 214 employees to 210 and the cost of coffee from $3.95 to $4.00, the estimated total comes to $840.00. All other choices appear to be based on errors in rounding or calculation.

The estimated total cost for the coffee is $840.00.

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