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kati45 [8]
3 years ago
11

Maria is going to rent a truck for one day. There are two companies she can choose from, and they have the following prices. Com

pany A charges an initial fee of $55 and an additional 90 cents for every mile driven. Company B charges an initial fee of $90 and an additional 40 cents for every mile driven. For what mileages will Company A charge less than Company B?
Business
1 answer:
Darya [45]3 years ago
8 0

Answer:

for mileage less than 70 miles Company A will charge less than Company B

Explanation:

Data provided in the question:

initial fee of Company A = $55

additional cents for every mile driven for company A = 90 = $0.90

initial fee of Company B = $90

additional cents for every mile driven for company B = 40 = $0.40

let the minimum miles for which Company A charge less than Company B be 'x' miles

Now,

The Total rent function for company A

= Initial fees + charges for total miles driven

= $55 + $0.90x  .....................(1)

and,

The Total rent function for company B

= Initial fees + charges for total miles driven

= $90 + $0.40x     ................(2)

for the condition Company A charge less than Company B

equation 1 < equation 2

or

$55 + $0.90x < $90 + $0.40x

or

$0.90x - $0.40x < $90 - $55

or

$0.50x < $35

or

x < 70 miles

hence,

for mileage less than 70 miles Company A will charge less than Company B

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I will create a combination of functional and project-based organizational structures.  I have selected the combination due to the following rationale.

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The Inferior Goods Co. stock is expected to earn 13% in a recession, 7% in a normal economy, and lose 6% in a booming economy. T
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Answer:

Ans. The expected rate of return on the Inferior Goods Co. stock is 5.90%

Explanation:

Hi, you just have to multiply the expected earnings by the probability of occurance of a certain event and then add up all the products. Here is the information all organized to be processed.

Item                  Prob Earn

Booming           20% -6%

Normal           55% 7%

Recession   25% 13%

Ok, now let´s calculate the expected rate of return.

ExpectedReturn=(0.2*(-0.06))+(0.55*0.07)+(0.25*0.13)

ExpectedReturn=-0.012+0.039+0.033=0.059

So the expected rate of return of the stock is 5.90%

Best of luck.

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