Download Unit 6 Notes and Assignments

Chapter 6 Notes
Income is considered revenue or money received.
Budget is spending plan that allocates your income to meet financial obligations and save for
things you want.
Fixed Expense is an expense that is a set amount of money for each month. Examples include
savings, mortgage, and rent payments.
Variable Expense is an expense that is a variable amount of money for each month. Examples
include telephone bills, transportation expenses, and personal expenses.
Sales Slip is something that most store employees give to a customer after a sales transaction is
complete.
Unit Price is the price for one item or group of items treated as one. For example, a dozen of
eggs is one unit.
Extension is the product of the unit price and the quantity of each item. Example, the amount,
$159.80, is the extension of 10 boxes at $15.98.
Subtotal is the sum of the extensions.
Quantity x Unit Price = Extension
Sales Tax Rate x Subtotal = Sales Tax
Subtotal + Sales Tax = Total
C = Hundred (100)
M = Thousand (1000)
T = Ton (2000)
t = metric ton (1000)
Hundredweight or hundred pounds the Roman symbol is cwt. Equals 100 pounds.
KWH = 1000 watts = Kilowatt Hour
Electricity is measured in KWH
Fuel adjustment rate is a second charge for usage when figuring electricity. The fuel
adjustment charge is calculated by multiplying the total kilowatt hours by the adjustment rate.
THMs = Therms = Measurement for a gas bill. In order to figure out how many therms
are used you take the gas used times the therm factor.
Gross savings – cost of product = net savings
Chapter 6 Notes
Cost / estimated savings per year = Payback period = The number of years it will take for
the product to save enough money to pay you back for the cost.
Special Chapter 6-6 Notes
Electric Bill Notes
Gas Bill Notes
KWH = kilowatt-hour = 1,000 watts
THMs = Therms
Present Meter Reading – Past Meter
Reading = KWH used
Present Meter Reading - Past Meter Reading
= Hundreds of Cubic Feet of Gas Used
KWH used * Rates = Cost of KWH
Gas Used * Therm Factor = Therms Used
(Round to Whole number)
First 500 KWH = .1011
Next 300 KWH = .1216
Over 800 KWH = .1471
Therms * Rates = Charge for Gas Used
KWH * Fuel Adj. Rate = Cost of Fuel Adj.
First 90 * .4208
Over 90 * .3568
Fuel Adj. Rate = .00435
Charge * Sales Tax Rate = Tax Amount
Cost of KWH + Fuel Adj. = Cost * Tax Rate
= Tax Amount
Tax Rate = .05 or 5%
Charge + Tax = Total Bill
Tax Rate = .05 or 5%
Cost + Tax = Total Bill
Example of Electric Bill
June 10 reading 925 – May 10 reading 278 =
647 KWH Used
500 * .1011 = 50.55 + 147 * .1216 = 17.88
= 68.43 Cost of KWH
647 * .00435 = 2.81 Fuel Adj. Charge
68.43 + 2.81 = 71.24 * .05 = 3.56 Sales Tax
71.24 + 3.56 = 74.80 Total Bill
Example of Gas Bill
Present Meter Reading 380 – Last Meter
Reading 260 = 120 Gas Used
120 * 1.486 = 178.32 = 178 Therms Used
90 * .4208 = 37.87 + 88 * .3568 = 31.40 =
69.27 Charge for Gas Used
69.27 * .05 = 3.46 Sales Tax
69.27 + 3.46 = 72.73 Total Bill