Claudia has sold her car and received approval from the garage owner to re-lease her downtown reserved parking spot for the next four months so she can make some extra money. The rental fee is $200 per month, and she expects to charge $18 per day. Transportation in a car pool will cost her $6 per day. If there are a maximum of 20 work days per month for re-leasing the spot, determine the following:
a. Total cost and revenue relations
b. Breakeven quantity per month
c. Amount of money she will make (or lose) if the number of re-leased days per month over the four-month period are 18, 12, 17, and 20.
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Claudia has sold her car and received approval from the garage owner to re-lease her downtown reserved parking spot for the next four months so she can make ...
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Answer:
Claudia has sold her car and received approval from the garage owner to re-lease her downtown reserved parking spot for the next four months so she can make some extra money. The rental fee is $200 per month, and she expects to charge $18 per day. Transportation in a car pool will cost her $6 per day. If there are a maximum of 20 work days per month for re-leasing the spot, determine the following:
a. Total cost and revenue relations
b. Breakeven quantity per month
c. Amount of money she will make (or lose) if the number of re-leased days per month over the four-month period are 18, 12, 17, and 20.
Step-by-step solution
Step 1 of 5
Given information:
• Rental cost is $200 per month.
• Parking charges (RC) is $18 per day.
• Transportation cost (TC) in a car pool is $6 per day.
• Working days in a moth (WD) is 20 days.