Question - The Pacific Corporation operates car rental agencies at more than 20 airports. Customers can choose from one of three contracts for car rentals of one day or less:
- Contract 1: $50 for the day
- Contract 2: $30 for the day plus $0.20 per mile travelled
- Contract 3: $1 per mile traveled
1. Plot separate graphs for each of the three contracts with costs on the vertical and miles traveled on the horizontal axis.
2. Express each contract as a linear const function of the form y = a + bX.
3. Identify each contract as a variable, fixed, or mixed-cost function.