How to Calculate the Equal Cost Mileage of Two Car Rentals?
What is the number of miles that result in the same cost of EZ Car Rental and Ace Rent A-Car?
Is there a specific formula to determine the equal cost mileage for both car rental companies?
Equal Cost Mileage Calculation:
To find the mile point at which EZ Car Rental and Ace Rent A-Car cost the same, you need to set up an equation where the total costs are equal and solve for the number of miles.
When comparing the cost structures of EZ Car Rental and Ace Rent A-Car, EZ Car Rental charges a fixed fee of $40 plus $0.25 per mile, while Ace Rent A-Car charges $25 plus $0.45 per mile.
To calculate the mileage at which both rentals will cost the same, you can use the following equation:
40 + 0.25m = 25 + 0.45m
Where:
- m represents the number of miles driven.
- The left side of the equation represents the total cost of EZ Car Rental.
- The right side of the equation represents the total cost of Ace Rent A-Car.
By simplifying the equation, you can solve for the equal cost mileage as follows:
40 = 25 + 0.20m
15 = 0.20m
m = 15 / 0.20
m = 75 miles
Therefore, the equal cost mileage for renting a car from both EZ Car Rental and Ace Rent A-Car is 75 miles. At this mileage, the total cost of renting a car from either company will be the same. This calculation allows you to determine the point at which both car rental options become equally cost-effective based on the distance driven.