Question

Stewie wants to rent a moving truck.Suppose company a charges a rate of $40 per day band company b charges a $60 fee plus has a rate of $20 per day.For what number of days is the cost same?

Answer 1

The indifference point is 3 days.

Explanation:

Company A:

Total cost= 40*x

Company B:

Total cost= 60 + 20*x

x= number of days

To calculate the indifference point, we need to equal both formulas. and isolate x:

40x = 60 + 20x

20x= 60

x= 60/20

x= 3

The indifference point is 3 days.

Prove:

Company A:

Total cost= 40*3= $120

Company B:

Total cost= 60 + 20*3= $120