The amount of sugar that the two companies charge the same is 20 tons
The cost when the two companies charge the same is $5,015
What is breakeven amount of sugar for the two companies?
The amount of sugar that the two companies charge the same is derived at the point when the total cost of both companies are the same, bearing in mind that the total cost in this case is made of fixed cost to rent truck and variable cost, which is additional fee for each ton of sugar moved.
First company:
TC=3005+100.50x
Second company:
TC=250.75x
3005+100.50x=250.75x
3005=250.75x-100.50x
3005=150.25x
x=3005/150.25
x=20 tons of sugar
Total cost of 20 tons=250.75*20=$5,015
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Full question:
The Sugar Sweet Company will choose from two companies to transport its sugar to market. The first company charges $3005 to rent trucks plus an additional fee of $100.50 for each ton of sugar. The second company does not charge to rent trucks but charges $250.75 for each ton of sugar
For what amount of sugar do the two companies charge the same?
What is the cost when the two companies charge the same?
