Final answer:
The Sugar Sweet Company is weighing two transportation options, each with a fixed rental fee plus a variable fee per ton. Calculations would reveal which company offers the more cost-effective service based on the quantity of sugar being transported.
Step-by-step explanation:
The Sugar Sweet Company is considering two options for transporting its sugar to market. The financial dilemma involves choosing between two different transportation companies, each with a unique pricing structure: a fixed rental fee plus an additional fee per ton of sugar. To make an informed decision, the company must analyze and compare the total costs associated with each option based on the amount of sugar they need to transport.
The first option is a company that charges a rental fee of $4,096 and an additional $175.50 per ton of sugar. The second company's rental fee is $4,500 with an additional charge of $150.25 per ton of sugar. Calculating the total cost for a given number of tons of sugar for both companies will determine the more cost-effective choice for the Sugar Sweet Company.