Car Rental Company Cost Comparison

What are the pricing details for Car Rental Company A and Company B?

Pricing Details:

Car Rental Company A: charges $35.00 plus $.12 cent per mile.

Car Rental Company B: charges $12.99 plus $.33 cent per mile.

For Company A, the cost formula can be expressed as: Cost = $35.00 + $0.12x

For Company B, the cost formula can be expressed as: Cost = $12.99 + $0.33x

Which company becomes more expensive for a certain number of miles?

Cost Comparison:

To determine when Company A becomes more expensive than Company B, we set up the following inequality:

$35.00 + $0.12x > $12.99 + $0.33x

$0.21x > $22.01

x > $22.01 / $0.21

Final Answer: Car Rental Company A becomes more expensive than Company B for any number of miles greater than 104.76.

Explanation: To find the point where Company A is more expensive, we solved the inequality and found that any distance greater than 104.76 miles makes Company A more costly than Company B.

← Sole proprietorship vs corporation making the right business decision How to calculate a firm s profit in economics →