The landlord's favorite place to buy shrimp in New Orleans was the Cajun Seafood market on Claiborne and he did not hesitate to stock up on shrimp when he dropped by the shotgun double house he bought as an investment a few years ago. Sadly, it was 685 miles one way to visit the property and even though gas was available at $1.88 per gallon and the car achieved 25 miles per gallon, it was an expensive and lengthy trip. The cheapest plane tickets that were routinely available cost $199 round trip, but occasionally there was a super sale where the price dropped lower than that. He always packed a cooler with $12 worth of ice regardless of how much shrimp he actually bought. The shrimp were a bargain at $7.99 per pound for jumbos and he always tried to fit 35 pounds of the crustaceans in the cooler. What is the price of round trip airfare that would make the landed cost of a pound of shrimp the same for both driving and flying?

Question

Quizplus · Accepted Answer

To find the price of round trip airfare that would make the landed cost of a pound of shrimp the same for both driving and flying, we need to calculate the total cost of driving to New Orleans and buying shrimp and compare it to the cost of flying to New Orleans and buying shrimp.

Total cost of driving:
Distance = 685 miles one way 
Gas cost = 685 miles / 25 miles per gallon * $1.88 per gallon = $50.28 round trip 
Shrimp cost = 35 pounds * $7.99 per pound = $279.65 
Total cost = $50.28 + $279.65 + $12 (for ice) = $341.93

Total cost of flying: 
Airfare cost = $199 (or lower) 
Shrimp cost = 35 pounds * $7.99 per pound = $279.65 
Total cost = $199 + $279.65 + $12 (for ice) = $490.65

Now we need to find the airfare price that would make the total cost of flying the same as the total cost of driving:

$341.93 - $279.65 = $62.28 
$62.28/2 = $31.14 (the cost savings of driving one way)

$490.65 - $279.65 = $211 
$211/2 = $105.50 (the additional cost of flying one way)

$105.50 + $199 = $304.50 (round trip airfare cost that would make the landed cost of a pound of shrimp the same for both driving and flying)

So the answer is C) $103

The Landlord's Favorite Place to Buy Shrimp in New Orleans