Question

Ace Truck leases its 10-ft box truck at $30/day and $0.50/mi, whereas Acme Truck leases a similar truck at $25/day and $0.55/mi.

(a) Find the daily cost of leasing from each company as a function of the number of miles driven.

Answer 1

Ace Truck

`C(m) = 30 + 0.5*m`

Acme Truck

`C(m) = 25 + 0.55*m`

Explanation:

The cost function to lease a box truck from a company has the following format:

`C(m) = F + a*m`

In which F is the fixed cost and a is the cost per mile m.

(a) Find the daily cost of leasing from each company as a function of the number of miles driven.

Ace Truck

$30/day and $0.50/mi. This means that
`F = 30, a = 0.50`. So

`C(m) = 30 + 0.5*m`

Acme Truck

$25/day and $0.55/mi. This means that
`F = 25 a = 0.55`. So

`C(m) = 25 + 0.55*m`