Average weekly profit rounded to the nearest whole dollar

Assignment Help Financial Management

Reference no: EM131315867

Cheapest Car Rental rents cars at the Chicago airport. The car rental market consists of two segments: the short-term segment, which rents for an average of 0.6 weeks, and the medium-term segment, which rents for an average of 1 weeks. Cheapest currently rents an average of 200 cars a week to the short-term segment and 100 cars a week to the medium-term segment. Approximately 20 percent of the cars returned (evenly distributed across both segments) are found to be defective and in need of repairs before they can be made available for rent again. The remaining cars, not needing repairs are cleaned, filled with gas, and made available for rent. On average, there are 102 cars waiting to be cleaned (or in the cleaning process). The average cost of this operation is $5 per car. Cars needing repair spend an average of two weeks out of service and incur an average cost of $150 per car. Assume that cars are rented as soon as they are available for rent, that is, as soon as they have been cleaned or repaired. Short term renters pay $200 per week, while medium term renters pay $120 per week. Assume each car loses $40 in value per week due to depreciation. What is the average weekly profit rounded to the nearest whole dollar?

Reference no: EM131315867

Questions Cloud

Explain what the specific key environmental forces : Write a 1,050-word report using your company or one with which you are familiar. Explain what the specific key environmental forces are that created an opportunity for your company

How many require one delay : Suppose we have a machine with three instruction types, which we'll call A, B, and C.- Of the 90 possible sequences of two A's, two B's and two C's, how many require no delay? How many require one delay?

Give a brief description of your product or service idea : Give a brief description of your product or service idea that you are developing for this course so your peers know what it is

What will be the value of the investment in ten years : Future value: Larry James is planning to invest $25,500 today in a mutual fund that will provide a return of 0.10 each year. What will be the value of the investment in 10 years?

Average weekly profit rounded to the nearest whole dollar : Cheapest Car Rental rents cars at the Chicago airport. The car rental market consists of two segments: the short-term segment, which rents for an average of 0.6 weeks, and the medium-term segment, which rents for an average of 1 weeks. What is the av..

What modernist interest does he investigate : What formal quality did this artist explore? How did his medium contribute to the appearance of his work? What Modernist interest does he investigate?

Discuss how information gap between generations and cultures : Discuss how the information gap between generations, cultures, income levels, and education can be resolved. Include a statement of your personal philosophy on the future of integrated business communication

Which would you expect to have the highest option price : Of the following options, which would you expect to have the highest option price? A European 1-month put option on a stock whose market price is $90 where the strike price is $100. The standard deviation of the stock price over the past 5 years has ..

Which will pay an annual stated interest rate : You plan to invest $1,250 in a money market account which will pay an annual stated (simple) interest rate of 8.75 percent, but which compounds interest on a weekly basis. If you leave this money on deposit for two years, what will be your ending bal..

User Account

All Pages