Question

Dan is going to rent a truck for one day. Company A charges $92 with unlimited mileage. Company B has an initial fee of $65 and charges an additional $0.90 for every mile driven. If Dan plans to drive x miles, which company is more cost-effective?

a) Company A
b) Company B
c) Both companies have the same cost
d) It depends on the number of miles driven

Answer 1

To determine which company is more cost-effective, compare the total cost of renting a truck from each company. If Dan plans to drive more than 30 miles, Company B is more cost-effective. Otherwise, Company A is more cost-effective.

Step-by-step explanation:

To determine which company is more cost-effective, we need to compare the total cost of renting a truck from each company. Let's evaluate the cost for driving x miles:

- Company A charges a flat rate of $92 with unlimited mileage. So, the cost for driving x miles is $92.

- Company B has an initial fee of $65 and charges an additional $0.90 for every mile driven. So, the cost for driving x miles is $65 + ($0.90 * x).

To determine which company is more cost-effective, we will set up the following inequality:

$92 < $65 + ($0.90 * x)

Simplifying this inequality, we get:

$92 - $65 < $0.90 * x

$27 < $0.90 * x

Dividing both sides by $0.90, we get:

x > 27 / 0.90

x > 30

So, if Dan plans to drive more than 30 miles, Company B is more cost-effective. Otherwise, Company A is more cost-effective.