The proprietor of the newly built White Mountain Ski and Swim Lodge has been considering purchasing or leasing several snowmobiles for the use of guests. The owner found that other financial -bligations made it impossible to purchase the machines. Snowmobiles incorporated (SI) will lease a machine for $20 a week, including any needed maintenance. According to SI, the usual rental charge to the guests of the lodge is $25 a week. Gasoline and oil are extra. Snowmobiles incorporated only leases a machine for the full season. the proprietor of ski and Swim. knowing that leasing an excessive number of snowmobiles might cause a net loss for the lodge, investigated the records of other resort owners. The combined experience at several other lodges was found to be: #Snowmobiles Demanded ob=bil:ties 109% CO 159. 10 .09%