Question

An enterprise rents out paddle boats for all-day use on a lake. The owner knows that he can rent out all 40 of his paddleboats if he charges $3 for each rental. He also knows that he can rent out only 38 if he charges $4 for each rental and that, in general, there will be 2 fewer paddleboat rental for each extra dollar he charges per rental. What would the owner's total revenue be if he charged $6 for each paddleboat rental?
a. $60
b. $135
c. $145
d. $66

Answer 1

Answer:

The right answer is $ 204, but none of the options given is correct.

Step-by-step explanation:

1. Let's review the information given to us to answer the question correctly:

Number of paddle-boats available for rent on the lake = 40

Cost of rent = $ 3

The owner knows that he can rent out only 38 if he charges $4 for each rental and that, in general, there will be 2 fewer paddle-boats rental for each extra dollar he charges per rental

2. What would the owner's total revenue be if he charged $6 for each paddle-boat rental?

Let's use a table to represent the relationship between number of paddle-boats for rental and the cost of the rent, this way:

Paddle-boats             40    38   36   34  32  30  28  26  24  22  20

Cost of rent in $          3      4     5     6    7    8     9    10   11   12   13

As we can see in the table, the total revenue when  $ 6 is the cost of rental is:

Total revenue = Cost of rental * Number of paddle-boats available

Total revenue = 6 * 34

Total revenue = $ 204

Answer 2

Answer:

The owner's total revenue would be $204 if he charged $6 for each paddle boat rental.

Step-by-step explanation:

The owner has a total of 40 paddle boats and he can rent out all of them if he charges $3 per paddle boat. For each extra dollar, the number of paddle boats will decrease by 2. So, if he charges $6 (3 extra dollars) for each rental he can rent out:

40 - (3 x 2)

= 40 - 6

= 34 paddle boats.

The total revenue can be calculated by multiplying the number of paddle boats rented by the rent price per paddle boat.

Total Revenue = 34 x 6

                        = $204

The owner's total revenue would be $204 if he charged $6 for each paddle boat rental.