A coal company can choose to transport coal to one of its customers by railroad or by truck. If the railroad charges by the mile and the trucking company charges by the ton, which means of transporting the coal would cost less than the other?
(1) The railroad charges $5,000 plus $0.01 per mile per railroad car used, and the trucking company charges $3,000 plus $85 per ton.
(2) The customer to whom the coal is to be sent is 195 miles away from the coal company.
Let the miles covered = x and coal weight = y
Statement 1Transport cost by Railroad = 5000+ 0.01x
Transport cost by Truck = 3000+ 85y
As no information given on miles covered(x) or coal weight(y), the information is not sufficient to determine which means of transporting coal is less cheaper than the other..............Insufficient
Statement 2Transport cost by Railroad = 5000+ 0.01x= 5000+ 195*(0.01)
Although transportation cost by railroad can be determined, the same can not be determined for transportation by truck. ..Insufficient
Combining (1) and (2), the information is still insufficient.
Answer:
E