Final answer:
To find the variation that should be allowed in the delivery service, we can calculate the penalty incurred for delivering late and the decline in delivery costs for each minute deviation from the target. By setting up an equation and simplifying it, we find that the allowed variation should be 0 minutes or less.
Step-by-step explanation:
To find the variation that should be allowed in the delivery service, we can start by calculating the penalty incurred for delivering later than 10 minutes. The penalty is $3 off the pizza bill. Next, we can calculate the decline in delivery costs for each minute deviation from the target. The delivery costs decline at a rate of $0.15 per minute. To find the allowed variation, k, we need to determine the maximum number of minutes the delivery can be late, while still incurring a penalty less than or equal to the reduction in delivery costs.
Let's set up the equation:
$3 ≤ $2 - 0.15k
Simplifying the equation, we get:
0.15k ≤ $2 - $3
0.15k ≤ -$1
k ≤ -$1 / 0.15
k ≤ -6.67
Since k represents variation, it cannot be negative. Therefore, the allowed variation in the delivery service should be 0 minutes or less.1