finding relationship between distance and price and how to make decision

[saccharinex]

Hi Mr Excel,

I really need your help!

Please see the below questions.

Rent a car. The two popular rental car companies in town are Goldee and Supreme. Goldee charges $195.99 per day plus $0.85 per kilometer, and Supreme charges $175.99 a day plus $1.29 per kilometer. You are taking a trip upcountry and will need to rent a car.


a. Construct a spreadsheet model to analyze the two choices. Sketch the Influence diagram of your model.


b. It is likely that this trip will span 3 to 5 days and involve a significant amount of driving. Which company should you go with? Explain your choice.


c. At what travel distances will you be indifferent to either rental company? If the trip is longer than 5 days, will the indifferent distance be longer or shorter?

For part a) I have created a spreadsheet model with the distance kept constant at 180km every day. ( is this correct? or should i change the distance to vary everyday?

Part b) I have chosen Goldee if only for 3 days and Supreme for for 4 days or more. Is the answer correct?

Part C) I used goal seek to find the price to be indifferent to both companies. But then this means that my assumed distance as seen in part A is made redundant. Could you help me with this question on how to work it out?

Thank you!!!!

 

[Michael M]

Hmmm...looks like an assignment....We don't do assignments OR homework, unless we are getting the credits !!!
Even getting us to check your work, is the same as us doing the work.