Albany, NY. For transportation, the group will rent a car from either the State Tech Motor Pool or a local car dealer. The Motor Pool charges $0.36 per mile, has no daily fee, and pays for the gas. The local car dealer charges $30 per day and $0.20 per mile, but the group must pay for the gas. The car's fuel rating is 20 miles per gallon, and the price of gas is estimated to be $2.00 per gallon.
a. At what point, in miles, is the cost of both options equal?
b. The car dealer has offered a special student discount and will give the students 100 free miles per day. What is the new breakeven point?
c. Suppose now that the Motor Pool reduces its all-inclusive rate to $0.34 per mile and that the car dealer increases the rate to $30 per day and $0.28 per mile. In this case, the car dealer wants to encourage student business, so he offers 900 free miles for the entire six-day trip. He claims that if more than 750 miles are driven, students will come out ahead with one of his rental cars. If the students