Two companies are competing against one another for a contract to provide basic vehicle maintenance for another company that maintains a fleet of 300 cars for its sales agents. Jack's Tire and Lube offers on-site maintenance for $42.00 per car.
Care includes basic oil-change services, changing wiper blades and filters as needed, and checking and filling all the car's fluids and tires every 3,000 miles. Major repairs are then referred to a partner company that offers a 20% discount to Jack's clients.
Sam's Service Express offers off-site maintenance for $38.00 per car. Care includes basic oil-changing services, changing wiper blades and filters as needed, and checking and filling all the car's fluids and tires every 3,000 miles. Major repairs are completed by Sam's company at the site where basic maintenance is performed. Sam's offers a 10% discount to contract clients.
Each company requires that a minimum of 100 cars be put on their service. The CEO who must arrange the contracts can see benefits in both service agreements. He has exactly $10,000 to spend on car service contracting. He wants to ensure that the older cars in the fleet are on Jack's service plan. Roughly one-third of the cars in the fleet are more than 2 years old and have high mileage.
How many cars in his fleet should be put on each plan to spend the $10,000 budget exactly? Make only one selection in each column.