Answer:
The indifference point is 200 miles
Explanation:
First, we need to establish the total cost formula for each company:
Pack and Go:
Total cost= 39.95 + 0.45x
x= miles driven
U-Drive:
Total cost= 59.95 + 0.35x
x= miles driven
Now, we equal both formulas and isolate x:
39.95 + 0.45x = 59.95 + 0.35x
0.1x = 20
x= 200 miles
The indifference point is 200 miles