The Green family is planning a one-week vacation in Florida and needs to rent a
ID: 3196022 • Letter: T
Question
The Green family is planning a one-week vacation in Florida and needs to rent a car while there. They researched and found the following options.
The Greens don't know exactly how far they will drive but estimate that it will be between 500 and 1000 miles. They must decide which plan to choose.
Write the Total Week's Rental Car Cost as a function of the Number of Miles Driven for each of the options.
Write a paragraph based on the best economics, explain under what conditions the Green Family should choose each option.
Extension1-The Greens know that they will drive approximately 900 miles, but they don't know exactly how long they will be in Florida, only that it will be sometime between 3-8 days. Given these new circumstances, explain under what conditions they should choose each option.
Extension2-The Greens don't know exactly how long they will be in Florida, only that it will be sometime between 3-8 days. They also don't know exactly how far they will drive, only somewhere between 500-1000 miles. Given these new circumstances, explain under what conditions they should choose each option.
*Weekly Rate 1 $329 per week, unlimited mileage. *Weekly Rate 2 $219 per week, plus 12 cents per mile. *Partial week charged at a full week's price. **Daily Rate 1 $50 per day, unlimited mileage. **Daily Rate 2 $40 per day plus 3 cents per mile. **Partial days charged at a full day's price.Explanation / Answer
WEEKLY RATE 1 = $329 , WEEKLY RATE 2 ,C(X) = $ 219 + 0.12 X ( X= NUMBER OF MILES)
ONE WEEK RENTAL COST USING DAILY RATE 1 = 7 ($ 50) = $350
ONE WEEK RENTAL COST USING DAILY RATE 2 = 7($ 40)+ 0.03 X = $280 + 0.03 X ( X= NUMBER OF MILES)
CLEARLY DAILY RATE 1 IS COSTLY. FOR DISTANE 916.67 , WEEKLY RATE 2 = $219+ ($0.12)916.67
= $329 HENCE UP TO 916.67 MILES WEEKLY RATE 2 IS BETTER
BUT CONSIDERING DAILY RATE 2 THIS COST = 7 ($40) + 0.03(916.67)= $280+$27.50= $307.5 HENCE BEST OPTION.
NOW FOR SMALLER DISTANCE FOR LESS THAN AND UP TO (677.78) MILES WEEKLY RATE 1 IS BETTER
AFTER WARDS DAILY RATE 2 IS BETTER
EXTENTION 1 => AS DISTANCE TRAVELLED MORE THAN 900 MILES CLEARLY DAILY RATE 2 IS BEST OPTION IF DAYS 3-8 NO USE OF WEEKLY OPTIONS AS PART WILL COST FULL WEEK.
EXTENTION 2 => AS DAYS 3 - 8 WEEKLY OPTIONS ARE OF NO USE . AGAIN DAILY RATE 2 IS BETTER COMPARE TO DAILY RATE 1 EVEN FOR 1000 MILES IT WILL COST 3X40 + (.03) 1000 TO 8X40 + 1000(.03)
= $150 TO $ 355 ALWAYS BETTER THAN DAILY RATE 2
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