You decide to enter the world of business and form your own taxi company to transport customers in the inner city for a maximum distance of 10 km. Your aim is to provide great service while making as much money as possible. You decide on a flagfall of $2 however you are unsure what cost per km to charge customers.
Trial various cost/km values to determine the cost per km that you should charge to encourage the customers to choose your taxi company instead of the other two taxi companies for most distances.
Blue taxis - flagfall = $2.50, cost per km = $1.50
Red taxis - flagfall = $1.25, cost per km = $2.25 per km
I've already worked out at what distance the cost to the customer would be the same for both companies, if that's needed?
The question then says Hint: are there any travel distances where one of the other companies might still be chosen by a customer?
Please help me start off and work through this question - I have no idea where to start!
Thankyou in advance
Ok thankyou very much I'm working with that now and will post my answer here later. Could you maybe help me check this answer? http://www.mathhelpforum.com/math-he...-best-fit.html
We found that for $ , they both travel km.
But, we want to know which would be better value for money. So, we want to see how much it would cost to travel km.
is your km travelled so substitute into both equation once at a time and solve for .
You will find that one of the taxi will travel km for a lower price which would be your better value for money.