The student chapter of Philippine Society of Mechanical Engineers is planning a 6-day trip to the National conference in North of Luzon. For transportation the group will rent a car from either the Motor Pool Corporation or a local car dealer. The Motor Pool charges Php 20.80 per km, has no daily fee, and the motor pool pays for the gas. The car dealer charges Php 1,500 per day and Php 11.2 per km, but the group must pay for the gas. The car’s fuel rating is 40 km per gallon, and the price of the gas is estimated to be Php 96 per gallon.   A. If the students anticipate driving 1,200 km total, from whom should they rent a car? b.At what point, in km , is the cost of both options equal? c.The car dealer has offered a special student discount and will give the students 50 free km per day, from whom should they rent a car. What is the new breakeven point?

Traffic and Highway Engineering
5th Edition
ISBN:9781305156241
Author:Garber, Nicholas J.
Publisher:Garber, Nicholas J.
Chapter2: Transportation Systems And Organizations
Section: Chapter Questions
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The student chapter of Philippine Society of Mechanical Engineers is planning a 6-day trip to the National conference in North of Luzon. For transportation the group will rent a car from either the Motor Pool Corporation or a local car dealer. The Motor Pool charges Php 20.80 per km, has no daily fee, and the motor pool pays for the gas. The car dealer charges Php 1,500 per day and Php 11.2 per km, but the group must pay for the gas. The car’s fuel rating is 40 km per gallon, and the price of the gas is estimated to be Php 96 per gallon.

 

A. If the students anticipate driving 1,200 km total, from whom should they rent a car?

b.At what point, in km , is the cost of both options equal?

c.The car dealer has offered a special student discount and will give the students 50 free km per day, from whom should they rent a car. What is the new breakeven point? 

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