Cost analysis Te owner of a small construction busi-ness needs a new truck. He can buy a diesel truck for $38,000 and it will cost him $0.24 per mile to operate. He can buy a gas engine truck for $35,600 and it will cost him $0.30 per mile to operate. Find the number of miles he must drive before the costs are equal. If he normally keeps a truck for 5 years, which is the better buy?

Question

Cost analysis   Te owner of a small construction busi-ness needs a new truck. He can buy a diesel truck for $38,000 and it will cost him $0.24 per mile to operate. He can buy a gas engine truck for $35,600 and it will cost him $0.30 per mile to operate. Find the number of miles he must drive before the costs are equal. If he normally keeps a truck for 5 years, which is the better buy?

Steve · Accepted Answer

costs are equal after x miles if 38000 + 0.24x = 35600 + 0.30x Now you need to know how many miles/year he drives.