To determine when each video rental store would be the more cost-effective option, we can set up a comparison based on the membership fees and rental costs.
Blockbuster Costs:
- Membership Fee: $3 per month
- Cost per Movie Rented: $0.75
The total cost for renting movies from Blockbuster can be described by the equation: \[ \text{Total Cost}_{\text{Blockbuster}} = 3 + 0.75m \] where \( m \) is the number of movies rented in a month.
Hollywood Video Costs:
- Membership Fee: $5 per month
- Cost per Movie Rented: $0.50
The total cost for renting movies from Hollywood Video can be described by the equation: \[ \text{Total Cost}_{\text{Hollywood}} = 5 + 0.50m \]
Scenario 1: Cheaper to Rent from Blockbuster
Let’s find a scenario where renting from Blockbuster is cheaper.
Assume a family rents 4 movies in a month.
Blockbuster Costs: \[ \text{Total Cost}_{\text{Blockbuster}} = 3 + 0.75(4) = 3 + 3 = 6 \]
Hollywood Video Costs: \[ \text{Total Cost}_{\text{Hollywood}} = 5 + 0.50(4) = 5 + 2 = 7 \]
In this scenario, renting 4 movies results in a total cost of $6 at Blockbuster, which is $1 cheaper than renting at Hollywood Video, which costs $7.
Scenario 2: Cheaper to Rent from Hollywood Video
Now, let’s find a scenario where renting from Hollywood Video is the more affordable option.
Assume a family rents 10 movies in a month.
Blockbuster Costs: \[ \text{Total Cost}_{\text{Blockbuster}} = 3 + 0.75(10) = 3 + 7.5 = 10.5 \]
Hollywood Video Costs: \[ \text{Total Cost}_{\text{Hollywood}} = 5 + 0.50(10) = 5 + 5 = 10 \]
In this scenario, renting 10 movies results in a total cost of $10 at Hollywood Video, which is $0.50 cheaper than renting at Blockbuster, which costs $10.5.
Conclusion
To summarize, renting from Blockbuster is cheaper when renting 4 movies in a month, while renting from Hollywood Video becomes cheaper when renting 10 movies. The threshold for determining which service is cheaper shifts based on the number of rentals, highlighting the importance of considering usage patterns when choosing membership options.