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Determine what is the new break-even point

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Reference no: EM132618016

A group from Bacolod is planning a six-day trip to Dumaguete. For transportation, the group will rent a car from either the school motor pool or a local car dealer. The school charges P26 per kilometer, has no daily fee, and the motor pool pays for the gas. The car dealer charges P2500 per day and P14 per km, but the group must pay for the gas. The car's fuel rating is 10 km per liter, and the price of the gas is estimated to be P28 per liter.

Problem (a) At what point, km is the cost of both options equal? (nearest value)

a. 717 km

b. 1200 km

c. 1448 km

d. 1,630 km

e. 1,913 km

Problem (b) The car dealer has offered a special student discount and will give the students 100 free km per day. What is the new break-even point?

a. 717 km

b. 1200 km

c. 1448 km

d. 1,630 km

e.1,913 km

Reference no: EM132618016

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