Question

A taxi driver rents their cab at a fixed rate of 80 dollars per day. The fuel expenses are 0.3 dollars per mile driven, and the revenue is 0.5 dollars per mile driven. If the taxi driver plans to drive for 400 miles each day, what is the net income per day?

Answer 1

The net income per day for the taxi driver is $0.

Step-by-step explanation:

To calculate the net income per day for the taxi driver, we need to subtract the expenses from the revenue. The fixed rental cost is $80 per day. The fuel expense per mile driven is $0.3, and since the taxi driver plans to drive for 400 miles each day, the fuel expense will be 400 * $0.3 = $120. The revenue per mile driven is $0.5, so the daily revenue will be 400 * $0.5 = $200. To calculate the net income per day, we subtract the expenses ($80 + $120) from the revenue ($200): $200 - ($80 + $120) = $200 - $200 = $0.