In shorter terms
A family is planning a road trip & they have two options of companies of which they can rent their car from:
Budget Rent a Car Ltd & Discount Car and Truck Rental LTD.
For Budget, the car is $500
and they charge $0.10 per km.
For Discount the car is $800
and they charge $0.05 per km.
so my question..
(a) What are the flat rental fees (fixed costs) for each company?
(b) If they only travel 3,000 km in total, which company should they rent the car from. Why.
(c)4,000 km is the actual distance their traveling, which company would u recommend, & offer mathematical proof.
i honestly hate to be one of those people who ‘get others to do their work"
but this is part of a math package and im done EVERYTHING except for this stupidness, LOL
please help?
(a) By fixed costs I’m pretty sure it means the cost just to rent the car before any driving is done, which would be $500 for Budget and $800 for Discount.
(b) This part is asking you which company would have the lower total cost, once you factor in the fixed cost plus the mileage cost. So you have to determine how much it costs to drive 3000 km for each company, then add the respective fixed cost, to find which company is cheaper. For example, with Budget the mileage cost is (3000)(0.10) = $300, so the total cost is $300 + $500 = $800. You can do the same calculation to find whether Discount is cheaper (doesn’t look like it, since Discount charges $800 before you even leave the parking lot).
(c) The solution here involves the same idea, only you must determine the mileage costs for 4000 km instead of 3000 km. It still looks like Budget is the cheaper choice.
October 21st, 2010 at 5:39 am
(a) By fixed costs I’m pretty sure it means the cost just to rent the car before any driving is done, which would be $500 for Budget and $800 for Discount.
(b) This part is asking you which company would have the lower total cost, once you factor in the fixed cost plus the mileage cost. So you have to determine how much it costs to drive 3000 km for each company, then add the respective fixed cost, to find which company is cheaper. For example, with Budget the mileage cost is (3000)(0.10) = $300, so the total cost is $300 + $500 = $800. You can do the same calculation to find whether Discount is cheaper (doesn’t look like it, since Discount charges $800 before you even leave the parking lot).
(c) The solution here involves the same idea, only you must determine the mileage costs for 4000 km instead of 3000 km. It still looks like Budget is the cheaper choice.
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