34. Samir can rent a moving truck from
Company A for $135 plus $0.50
per mile or from Company B for
$125 plus $0.70 per mile. Which
statement is true?
A. Renting from Company A will
always be cheaper.
B. Renting from Company B will
always be cheaper.
C. Renting from both companies
will cost the same if Samir
drives the truck 50 miles.
D. Renting from Company B will
be cheaper if Samir drives
the truck 100 miles.Which statement is true?

Respuesta :

The correct option in this case is as shown below:

C. Renting from both companies will cost the same if Samir drives the truck 50 miles.

What is the total rent cost for each company?

The total rent for each company can be determined as the fixed charge plus the variable charge per mile multiplied by the number of miles covered

Let us determine the number of miles which makes Samir indifferent between the two companies

Company's A cost=135+0.50x

Company's B cost=125+0.70x

135+0.50x=125+0.70x

135-125=0.70x-0.50x

10=0.20x

x=10/0.20

x=50

The costs of both companies are the same at 50 miles, above that the cost of company A is cheaper because it has a lower variable charge per mile of $0.50 compared to B's $0.70

Find out more about variable charge on:https://brainly.com/question/14374943

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