Milo is planning to rent out Segway Personal Transporters near a popular park in Vancouver for 90 days this summer. He purchased three Segways for $6500 each. The Segways are battery-powered electric vehicles that will be driven an average of 60 kilometres in a day. By purchasing two additional batteries for$995 each, Milo expects that he’ll be able to keep his Segways adequately charged to meet his daily demand. Milo’s other expenses will include space rental and utilities for a total of $100 per day, as well as insurance of $15 per Segway per day.

1. If Milo charges $35 per half-hour tour (approximately 10 kilometres), how much profit does he expect to make this summer?

2. What is the lowest price he could charge per half-hour tour and still break even?

3. If he wants to realize a profit of $300 per day, how much more should he charge per half-hour tour?

Answer rating: 100% (QA)

Cost of 3 Segways 3 x 6500 19500 Cost of Batteries 2 x 995 1990 Total Fixed cost 19500 199... View the full answer