Cost of Natural Gas In February 2007, Peoples Energy had ®the following rate schedule for natural gas usage in single family residences:
Monthly service charge $9.45
Per therm service charge
1st 50 therms $0.36375/therm
Over 50 therms $0.11445/therm
Gas charge $0.8738/therm
(a) What is the charge for using 50 therms in a month?
(b) What is the charge for using 500 therms in a month?
(c) Develop a model that relates the monthly charge C for x therms of gas.
(d) Graph the function found in part (c).
Source: Peoples Energy, Chicago, Illinois, 2007
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