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Jennifer Grant is the southwest regional recruiting manager for James Smith, LLC, a large advertising firm in Houston, Texas.
Jennifer Grant is the southwest regional recruiting manager for James & Smith, LLC, a large advertising firm in Houston, Texas. Jennifer needs to go to Baylor University in Waco, Texas for a one-day recruiting event that begins at 9 A.M. on Monday morning. Waco is 188 miles from Jennifer's office. If she drives her personal car, the company will reimburse her at the rate of $0.5 per mile. Company policy allows her to spend the night if she would need to leave town before 6 A.M. to arrive at her destination. The Harrington House, a hotel close to the campus, charges $61 per night. Instead of driving, Jennifer could catch a 7:30 A.M.flight at a round-trip price of $260. Flying to Waco would require her to rent a car for $31 per day. To cover incidental costs, the company will pay her $38 per day (called a per diem) if she spends at least 7 working hours a day out of town. As a manager, Jennifer is responsible for keeping recruiting costs within budget, so she wants to determine which is more economical, driving or flying.
(a)
(b)
