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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?

  • A. $845.30
  • B. $840.00
  • C. $829.50
  • D. $850.00
Correct Answer: B

Rationale: Rounding 214 employees to the nearest ten gives 210. Rounding the cost of coffee ($3.95) to the nearest dollar gives $4. The estimated total cost is 210 x $4 = $840.00.