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5 - ( 2 0 points ) Morteza was considering the money - making potential of chartering a bus to take people from his hometown
points Morteza was considering the moneymaking potential of chartering a bus to
take people from his hometown to an event in a larger city. Morteza planned to provide
transportation, tickets to the event, and refreshments on the bus for his customers. He
gathered data and categorized the predicted expenses as either fixed or variable.
Fixed Costs Variable Costs
Bus rental $ Event ticket $person
Gas expense $ Refreshments $person
Other fuels $
Bus driver $
Develop an expression of the total cost for this trip. Find the total cost and total profit for
the trip.
points Two purchasing plans have been offered in the company that Negin works
for, and she has the responsibility to recommend which plan serves the company better.
Plan A: at $ is to replace the existing equipment with a new one and sell the
old one.
Plan B: at $ is to buy a smaller one to use in tandem with the existing. The
maintenance cost in this case is however a bit higher but it is more flexible and
reliable.
What criteria should Negin use? What is the best plan and why?
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