Explanation Given information: A taxi company has an annual budget of $720,000 to spend on drivers and car replacement. Drivers cost the company $30000 each and car replacements cost $20000 each. Let d be the number of drivers paid and c be the number of cars replaced. Concept Used: Company’s annual budget is the sum of total driver cost and total car replacement cost, whereas Total driver cost is product of each driver cost and number of drivers paid and Total car replacement cost is product of each car replacement cost and number of cars replaced. Calculation: Steps Description C o m p a n y ’ s b u d g e t c o n s t r a i n t e q u a t i o n _ A n n u a l b u d g e t = { E a c h d r i v e r s c o s t × N o . o f d r i v e r s p a i d + E a c h C a r r e p l a c e m e n t s c o s t × N o To determine (b) To find: The intercepts of the graph of the equation and interpret.

Applied Calculus, 6e WileyPLUS + Loose-leaf

6th Edition

ISBN: 9781119408901

Author: Deborah Hughes-Hallett, Andrew M. Gleason, Patti Frazer Lock, Daniel E. Flath

Publisher: Wiley (WileyPLUS Products)

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Question

Chapter 1.4, Problem 34P

To determine

(a)

To find:

The company’s budget constraint equation.

To determine

(b)

To find:

The intercepts of the graph of the equation and interpret.

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Chapter 1.4, Problem 33P

Chapter 1.4, Problem 35P

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Chapter 1 Solutions

Applied Calculus, 6e WileyPLUS + Loose-leaf

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(a) To find: The company’s budget constraint equation.

Solution Summary: The author explains the company's budget constraint equation based on the information provided.