You saw that there was a gasoline price war going on in a small town 27 miles from where you live (54 miles round trip), so you are thinking about driving there to fill the tank in your pick-up truck, which gets 18 miles per gallon. You think it will take 22 gallons to fill your tank. If the cost of gasoline at your usual station is $3.60 per gallon, the required price at the out-of-town station to just breakeven is closest to: (choose one)
(a) $3.63
(b) $2.82
(c) $2.95
(d ) $3.11
Amount of gasoline to drive there and back = 54/18
= 3 gallons
Cost of 3 gallons = 3(3.60)
= $10.80
Must save $10.80 for 22 gallons of gasoline:
Required savings per gallon = 10.80/22
= $0.49
Cost of gasoline = 3.60 – 0.49
= $3.11
Answer is (d) $3.11
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