As the owner of a rent-a-car agency you have determined the following statistics:
The gross profit is $40 per car per day rented.When there is demand for a car when none is available there is a goodwill loss of $80 and the rental is lost.Each day a car is unused costs you $5 per car.Your firm initially has 4 cars.
a.Conduct a 10-day simulation of this business using Row #1 below for demand and Row #2 below for rental length.

b.If your firm can obtain another car for $200 for 10 days,should you take the extra car?

Question

As the owner of a rent-a-car agency you have determined the following statistics:
  The gross profit is $40 per car per day rented.When there is demand for a car when none is available there is a goodwill loss of $80 and the rental is lost.Each day a car is unused costs you $5 per car.Your firm initially has 4 cars. 
a.Conduct a 10-day simulation of this business using Row #1 below for demand and Row #2 below for rental length.
  
b.If your firm can obtain another car for $200 for 10 days,should you take the extra car?

Quizplus · Accepted Answer

The Answer of As the owner of a rent-a-car agency you have determined the following statistics:
  The gross profit is $40 per car per day rented.When there is demand for a car when none is available there is a goodwill loss of $80 and the rental is lost.Each day a car is unused costs you $5 per car.Your firm initially has 4 cars. 
a.Conduct a 10-day simulation of this business using Row #1 below for demand and Row #2 below for rental length.
  
b.If your firm can obtain another car for $200 for 10 days,should you take the extra car?

As the Owner of a Rent-A-Car Agency You Have Determined