Question

A truck can be rented from Company A for ​$150 a day plus ​$0.40 per mile. Company B charges ​$80 a day plus ​$0.90 per mile to rent the same truck. Find the number of miles in a day at which the rental costs for Company A and Company B are the same.

Answer 1

140 miles

Explanation:

Let

Number of miles = m

Total cost = fixed cost + variable cost

Company A = ​$150 + $0.40m

Company B = ​$80 + $0.90m

Equate company A and company B equation

Company A = Company B

​$150 + $0.40m = ​$80 + $0.90m

Collect like terms

150 - 80 = 0.90m - 0.40m

70 = 0.50m

m = 70 / 0.50

= 140

m = 140 miles

The number of miles in a day at which the rental costs for Company A and Company B are the same is 140 miles