Problem

Business: The Rule of .6 Many chemical and refining companies use “the rule of point s...

Business: The Rule of .6 Many chemical and refining companies use “the rule of point six” to estimate the cost of new equipment. According to this rule, if a piece of equipment (such as a storage tank) originally cost C dollars, then the cost of similar equipment that is x times as large will be approximately x0.6C dollars. For example, if the original equipment cost C dollars, then new equipment with twice the capacity of the old equipment (x = 2) would cost 20.6C = 1.516C dollars—that is, about 1.5 times as much. Therefore, to increase capacity by 100% costs only about 50% more.*

Use the rule of .6 to find how costs change if a company wants to triple (x = 3) its capacity.

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