Question
The city government of Basel arranges for the cleaning of all snow in city streets. During the winter, weekly snowfall is normally distributed with a
the long- term contract costs EUR 10,000 = 1000 per truck per week contracted for the long term. Thus, if the board signs a long-term contract for 3 = 12 trucks, they pay EUR 30,000= 12000 per week whether the trucks are used or not. Each truck is capable of cleaning 2 = 1inches of snow per week.
If snowfall in a week exceeds the quantity that can handled by the trucks included in the long-term lease, the board must make emergency arrangements at a cost of EUR 25000 = 2500for each additional truck brought in. for how many trucks should the board sign a long-term contract? for simplicity, you may assume that a fractional number of trucks can be obtained, i.e., 3.5 trucks is an acceptable answer.
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