Does not require any additional oil between filter changes., Ask an Expert

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A car rental agency is considering a modification in its oil change procedure. Currently, it uses a Type X filter, which costs $5 and must be changed every 7,000 miles along with the oil (5 quarts). Between each oil change, one quarts of oil must be added after each 1,000 miles. The proposed filter (Type Y) has to be replaced every 5,000 miles (along with 5 quarts of oil) but does not require any additional oil between filter changes. If the oil costs $1.08 per quarts, what is the maximum acceptable price for the Type Y filter?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9351609

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