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# Economics Analysis

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Any help !

Jun 18, 2016

#12
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Melody!

You are amazing, I really appreciate your help

thanks alot, I got it 100%

Jun 19, 2016

#1
+115412
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Hi 315 :)

Let K be the average number of Kilometres per year

Let C be the yearly compensation

The first one,

C1 = 0.223K+2000

when k=18000    C1= 0.223*18000+200 = 4214

The second one,

C2 = 0.32K

When K=18000  C2=0.32*18000 = 5760

So at 18,000 km per year the second one gives the better compensation

The reimbursements will be the same when  C1=C2

0.223K+2000=0.32K

2000= (0.32-0.223)K

2000/(0.32-0.223) = 20618.5567010309278350515463917525773195876288659793814432989691

the reimburements will be the same if the annual distance travelled is  20619 km

Here is the graph :)

Jun 18, 2016
#2
+115412
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Sorry,

Here is the graph :)

https://www.desmos.com/calculator/dseybxouem

Jun 18, 2016
#3
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Thank you Melody

I got it.

But there is a mistake in the first part Willie will receive 2000 not 200

thats why the total allowance of the first one is 6194  So the first one gives the better compensation.

but I totaly got the idea.

Jun 18, 2016
#4
+115412
+5

Thanks 315

I was suspicious of my answer but I was too tired or lazy to think it through properly. ://

Melody  Jun 18, 2016
#5
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For this question, I didn't get only this part

This area will require an average increase in a round-trip haul of 5 miles for 60% of the city.

What did he mean !

Jun 18, 2016
#6
+115412
+5

A round trip is to a destination and then back again.

So it saying that for 60 percent of the population the tip site is 2.5 miles futher away.  That will make the round trip 5 miles further.

The area is referring to the area of the tipping site.

I hope that helps ://

Melody  Jun 18, 2016
#7
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Area is a confusing word.

It means the region of the tipping site.

Is the wording still confusing??

Jun 18, 2016
#9
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But in the solution, he multiplies 0.6*5Km !

why !

xvxvxv  Jun 18, 2016
#10
+115412
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Hi again 315.   :)

Say the average round distance for Haul A is X miles

Then the average round distance for Haul B will be

60%*(x+5) + 20%*(X-2) +20%*X

=0.6X + 0.6*5 -0.2X - 0.2*2 +0.2X

= X     + 0.6*5           - 0.2*2

This question is only concerned with the difference in the average distance so which is

=0.6*5           - 0.2*2

=    3             -   0.4

=   2.6 miles       The average truck will travel 2.6miles further per load for plan B

Now I think that there are too many things that are poorly worded or not explained in this question BUT

this is my take.

What is the extra cost for part A.

I have to assume that the \$2.35 / m^3   includes transport and material costs.

2.35*2*10^6 = 4.7*10^5 = 4.7 million dollars

Extra costs for area A is 4.7 million dollars

Now what are  the extra costs for part B

Q  how many truck loads will it take to fill the 14*10^6 m^3 tip

A  14*10^6 divided by 20 = 7*10^5 loads

Q and how many extra distance will this be for B?

A  2.6*7*10^5 = 1.82*10^6     miles

Q  At 15mph how much extra time will this take?

A   1.82*10^6 divided by 15  = 121333 and 1/3 hours

Q  At \$35 pr hour how much extra cost will this be?

A  121333 and 1/3 hours *35 = \$ 4246666.67

Extra Cost for area B is    4.245 million dollars

Extra costs for area A is   4.7 million dollars

So, based on the information given,  area B is cheaper.

Melody  Jun 19, 2016
#11
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I have assumed that the average speed of the truck is always 15miles/hour - even on the return journey.

Melody  Jun 19, 2016
#8
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The first part concerning the auto dealer is irrelevant since he receives the same deal no matter which of his employer's plans he opts for.

a) At 18000 km per year, he receives    18000(.223) + 2000 = 6014   under the first option

Under the second option, he receives   18000(.32)  = 5760  ......so the first option is better

b) Let x be the distance at which the reimbursements are the same....and we have....

.223(x) + 2000   =  (.32)x    rearrange as

2000   =  0.097x      divide both sides by 0.097

x = about 20619 km

Jun 18, 2016
#12
+1832
+5

Melody!

You are amazing, I really appreciate your help

thanks alot, I got it 100%

xvxvxv Jun 19, 2016
#13
+115412
+5

Thanks 315

Thats a great ego boost on which I will start my morning. :)

Plus

I am always pleased to help. :D

Melody  Jun 19, 2016