2-1 Bob Johnson decided to purchase a new home. After looking at tracts of new homes, he decided that a custom-built home was preferable. He hired an archi tect to prepare the drawings. In due time, the archi tect completed the drawings and submitted them. Bob liked the plans; he was less pleased that he had to pay the architect a fec of $4000 to design the house. Bob asked a building contractor to provide a bid to con- struct the hone on a lot Bob already owned. While the contractor was working to assemble the bid, Bob came across a book of standard house plans. In the book was a home dat he and his wife liked better than the one designed for them by the architect. Bob paid $75 and obtained a comiplete set of plans for ihis other house. Bob then asked the contractor to provide a bid to consuucI this "stock plan" home. In this way Bob felt he could compare the costs and make a decision The building contractor submitted the following bids: First 50 kw-hr per hp of connected load at 86p Next 50 kW-hr per hp of connected load at 6.6 Next 150 kw-hr per hp of connected load at 4.0 All electricity over 250 kw-hr per hp of con- per kw-hr per kw-hr per kw-hr nected load at 3.1f per kw-hr The shop uses 2800 kw-hr per month (a) Calculate the monthly bill for this shop. What are the marginal and average costs per kilowatt hour? (b) Suppose Jennifer, the proprietor of the shop. has the chance to secure additional business that will require her to operate her existing equip ment more hours per day. This will use an extra 1200 kw-hr per monh. What is the lowest fig ure that she might reasonably consider to be the "cost" of this additional energy? What is this per Custom-designed home Stock plan home S128,000 128.500 kilowatt-hour? (c) She contemplates installing ceriain new machines that wil reduce the labor time required on cer- tain operations. These will increase the connected Bob was willing to pay the extra $500 for it. Bob's wife, however, felt they should go ahead with the cusiom-designed home, for, as she put it, "We can't afford to throw away a set of plans that cost $4000" Bob agreed, but he disliked the thought of building a home that is less desirable tban the stock plan home Then he asked your advice. Which house would you advise him to build? Explain. oad by 10 hp, but since they will operate only on certain special jobs, will add only 100 kw-hr per month. In a study to determine the economy of installing these new machines, what should be considered as the "cost" of this energy? What is this per kilowatl-hour