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Question
A contractor purchases a piece of equipment for $40,000. The equipment requires an average expenditure of $4.00 per hour for fuel and maintenance, and the operator is paid $13.00 per hour.A) Write an equation giving the total cost C of operating this equipment for the first t hours, including purchasing it.
B) Assuming that customers are charged $25.00 per hour of machine use, write an equation for the revenue R derived from t hours of use.
C) Use the formula P = R -C to write an equation for the profit, P, derived from the first t hours of use.
D) Find the number of hours this equipment must be used to break even, i.e. make a profit of $0. Round your answer to the nearest hour.
Answer
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