Question 438586: You are trying to decide whether to install a satellite dish or purchase a DVD player and rent DVD's. The satellite is a one time installation of $45. plus $34./month. To purchase the DVD player it is $185 and rent 8 DVD's per month at $2.50 each. At six months the satellite is a better deal and at 12 months the DVD is a better deal. What is the "Break even point"? or At how many months and at what cost will the two options be equal? Explain your answer. Answer by jorel1380(2518) (Show Source):
You can put this solution on YOUR website! 45+34x=185+8(2.50)x
At 10 months, the costs between the two options are the same. That's the "break even point". That's the point when the two options cost equal.