Question

A roofing contractor purchases a shingle delivery truck with a shingle elevator for $40,700. The vehicle requires an average expenditure of $6.50 per hour for fuel and maintenance, and the operator is paid $11.50 per hour.

(a) Write a linear equation giving the total cost C of operating this equipment for t hours. (Include the purchase cost of the equipment.)

C(t) =

(b) Assuming that customers are charged $40 per hour of machine use, write an equation for the revenue R derived from t hours of use.

R(t) =

(c) Use the formula for profit

P = R − C

to write an equation for the profit derived from t hours of use.

P(t) =

(d) Use the result of part (c) to find the break-even point—that is, the number of hours this equipment must be used to yield a profit of 0 dollars.

t = hr

Answer 1