Answered

Explore IDNLearn.com to discover insightful answers from experts and enthusiasts alike. Ask your questions and receive comprehensive and trustworthy answers from our experienced community of professionals.

Renting jet skis from Jerry's water sports costs $20.00 per hour plus a one-time fee of $8.00. Renting jet skis from Splash of fun costs $25.00 per hour with no one-time fee. The cost to rent a jet ski depends on the total number of hours,h, rented. How many hours must you rent a jet ski for the cost to be the same at jerry's water sports and at splash of fun?

Sagot :

Facundobuzzettiidn

Answer:

The indifference point is 1.6 hours.

Step-by-step explanation:

Giving the following information:

Jerry's water sports:

Variable cost= $20.00 per hour

Fixed cost= $8

Splash of fun:

Variable cost= $25.00 per hour.

First, we need to establish the system of equations:

Jerry= 8 + 20x

Splash= 25x

x= number of hours

Now, we need to equal both formulas and isolate x:

20x + 8 = 25x

8=5x

1.6= x

The indifference point is 1.6 hours.

Prove:

erry= 8 + 20*1.6= $40

Splash= 25*1.6= $40

Your engagement is important to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. Find the answers you need at IDNLearn.com. Thanks for stopping by, and come back soon for more valuable insights.