Richard Fundt has operated the U-Need-It rental agency in a northern Wisconsin city for the past five
Question:
Richard Fundt has operated the U-Need-It rental agency in a northern Wisconsin city for the past five years. One of the biggest rental items has always been chainsaws; lately, the demand for these saws has increased dramatically. Richard buys chainsaws at a special industrial rate and then rents them for $10 per day. The chainsaws are used an average of 50 to 60 days per year. Although Richard makes money on any chainsaw, he obviously makes more on those saws that last the longest.
Richard worked for a time as a repairperson and can make most repairs on the equipment he rents, including chainsaws. However, he would also like to limit the time he spends making repairs. U-Need-It is currently stocking two types of saws: North Woods and Accu-Cut. Richard has an impression that one of the models, Accu-Cut, does not seem to break down as much as the other. Richard currently has 8 North Woods saws and 11 Accu-Cut saws. He decides to keep track of the number of hours each is used between major repairs. He finds the following values, in hours:
Step by Step Answer:
Business Statistics A Decision Making Approach
ISBN: 9780133021844
9th Edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry