Question

Your car needs new brakes. You call a dealership and a local mechanic for prices. Cost of parts Labor cost per hour Dealership $24 $99 Local mechanic $45 $89 a. After how many hours are the total costs the same at both places

Answer 1

The indifference point is 2.1 hours.

Explanation:

First, we need to calculate the total cost for each option:

Dealership:

Total cost= 24 + 99x

Local mechanic:

Total cost= 45 + 89x

x= number of hours

Now, we need to equal both formulas and isolate x:

24 + 99x = 45 + 89x

10x = 21

x= 2.1

The indifference point is 2.1 hours.

Prove:

Total cost= 24 + 99*2.1= $231.9

Total cost= 45 + 89*2.1= $231.9