(a) The total amount that is to be paid by the company is equal to the setup fee and the total fee collected for each month. The equation that can be used in order to determine the answer is,
S = 275 + dx
where S is the total amount paid, d is the monthly fee and x is the number of months. Substituting the known values from the given,
1091 = 275 + d(12)
or, 1091 = 12d + 275
(b) To determine the value of d, follow the steps given below,
Substract 275 in each side of the equation,
1091 - 275 = 12d + 275 - 275
Simplifying,
816 = 12d
Divide both sides of the equation by 12,
816/12 = 12d/12
Simplifying,
68 = d
or d = 68
Hence, d = 68
