Question

Bob and Carl each rented the same kind of moving truck from EZ Move. There was a flat rental fee plus a charge per mile that the truck was driven. Bob's cost for his truck was $112.96 for 138 miles. Carl's cost for his truck was $142.78 for 209 miles. Which equation can be used to represent the cost of the rental truck? Round to the nearest hundredth if necessary.

Answer 1

The answer is D

Explanation:

Answer 2

Total cost= 55 + 0.42*x

x= miles driven

Explanation:

Giving the following information:

Bob's cost for his truck was $112.96 for 138 miles.

Carl's cost for his truck was $142.78 for 209 miles.

To calculate the fixed cost and variable cost per mile, we need to use the high-low method:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (142.78 - 112.96) / (209 - 138)

Variable cost per unit= $0.42 per mile

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 142.78 - (0.42*209)

Fixed costs= $55

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 112.96 - (0.42*138)

Fixed costs= $55

Finally, the cost equation:

Total cost= 55 + 0.42*x

x= miles driven