kevin car rental

Question

Kevin will rent a car for the weekend. He can choose one of two plans. The first plan has no initial fee but costs $0.90

 per mile driven. The second plan has an initial fee of $60

 and costs an additional $0.70

 per mile driven. How many miles would Kevin need to drive for the two plans to cost the same?

Answer 1

For the 1st plan (no fee), cost is $0.90x, where x is the no. of miles driven.

For the 2nd plan cost is $60 + $0.70x Initial charge plus mileage fee.

Breakeven occurs where the cost of the plans are equal.

0.90x = 60 + 0.70x

60 = 0.90x - 0.70x = 0.20x

60/0.20 = x = 300 miles.  Both will cost $270.

For <300 mi the first plan is best; use 2nd plan if >300 mi.