Microft Rentals supplies power tools for special projects. They charge $210 per
ID: 326671 • Letter: M
Question
Microft Rentals supplies power tools for special projects. They charge $210 per day for jack hammers, $250 per day for generators, and $400 per day for tractors. The maintenance costs for the jack hammers run $25 per day rented. The generators cost $30 per day and the tractors $32 per day. The company needs to earn at least $25,040 per day on its rentals to stay in business. The company only has 20 tractors that can be rented at one time. It also always has at least twice as many generators rented as jack hammers. Assuming the company is renting enough to stay in business, what combination of rentals would minimize its maintenance costs?
Explanation / Answer
In order to stay in business the organization needs to rent 20 Tractors, 24 jack hammers and 48 generators.
If we consider that 20 tractors are rented then the company earns per day = 20*400 = $8000
If we consider that number of Jackhammers are x and therefore the number of generatoes rented are 2x
and the organization needs to earn 25040-8000 = 17040 by renting generators and jackhammers.
Total amount from generators = 2x * 250
Total amount from Jack Hammers = x * 210
So therefore the equation results to:
500x + 210x = 17040
x = 24
Number of Jack hammers = 24
Number of Generators = 48