A gas station buys diesel fuel for $3 per gallon. The current selling price is $3.75 per gallon. Weekly fixed costs are $600.
2a) How many gallons of fuel must they sell to break even? 
2b) What would be the net profit / loss if they only sell 500 gallons in a week?

2c) How many gallons must they sell to earn $300 profit? 

QUESTION 3: You are trying to select between four online Help Desk plans from the Geek Squad. The Black Belt plan costs $29.95 / month plus $1 / online response, the Brown Belt plan costs $19.95 / month plus $3 / online response, the Green Belt plan costs $9.95 / month plus $5 / online response, and the No Plan option costs a flat $10 / question with no monthly fee. 

3a) If you expect 6 requests for help per month, which plan would be your best option for minimizing cost?
3b) What is the minimum number of requests for help each month that would make it worthwhile to get the expensive Black Belt plan? 

QUESTION 4: Blockbuster is offering a special plan for DVD renters They could choose the GOLD CLUB and pay $30 / month for unlimited rentals at no extra charge ($0 / movie), OR they could choose the SILVER CLUB and pay $10 / month and rent movies at a rate of $1 each, OR they could choose NO CLUB ($0 / month) and continue paying $2.50 to rent a movie. 
4a) What is the minimum number of monthly rentals that would make it worthwhile to consider joining the Gold Club?  
4b) What is the maximum number of monthly rentals for which it would be best to not join either club?  
4c) If a person normally rents 9 movies per month, which plan would you recommend for him?

Answer rating: 100% (QA)

2a To break even the gas station needs to cover its fixed costs Lets denote the number of gallons of fuel they need to sell to break even as x The profit from selling x gallons would be equal to the f... View the full answer