a) Hybrid car goes 30 miles per gallon of gas
cost of gas is $1.80 per gallon
To go 30 miles it costs $ 1.80
To go 1 mile it costs = $ 1.80 / 30
variable gasoline cost of going one mile in the hybrid car = $ 1.80 / 30
variable gasoline cost of going one mile in the hybrid car = $ 0.06
variable cost of going one mile in the traditional car = $ 1.80 / 20
variable cost of going one mile in the traditional car = $ 0.09
b) The “contribution margin” of the hybrid vehicle relative to the traditional vehicle = $ 0.09 - $ 0.06
The “contribution margin” of the hybrid vehicle relative to the traditional vehicle = $ 0.03
variable cost savings of hybrid car in comparison to traditional car on a per-mile basis = $ 0.03
c) break even on your investment in the hybrid car
suppose the traditional car costs $ 4500 then the hybrid car costs $ 4500 more than traditional car
Break even point = Fixed cost relative to traditional car / contribution per unit
Break even point = $ 4500/ $ 0.03
Break even point = 150,000 miles more than traditional car
Cost-volume-profit analysis can also be used in making personal financial decisions. For example, the purchase of...
Cost-volume-profit analysis can also be used in making personal financial decisions. For example, the purchase of a new car is one of your biggest personal expenditures. It is important that you carefully analyze your options. Suppose that you are considering the purchase of a hybrid vehicle. Let’s assume the following facts. The hybrid will initially cost an additional $6,000 above the cost of a traditional vehicle. The hybrid will get 30 miles per gallon of gas, and the traditional car...
Cost-volume-profit analysis can also be used in making personal financial decisions. For example, the purchase of a new car is one of your biggest personal expenditures. It is important that you carefully analyze your options. Suppose that you are considering the purchase of a hybrid vehicle. Let's assume the following facts: The hybrid will initially cost an additional $4,500 above the cost of a traditional vehicle. The hybrid will get 40 miles per gallon of gas, and the traditional car...
CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT. Expand Your Critical Thinking 11-7 (Part Level Submission) Cost-volume-profit analysis can also be used in making personal financial decisions. For example, the purchase of a new car is one of your biggest personal expenditures. It is important that you carefully analyze your options. Suppose that you are considering the purchase of a hybrid vehide. Let's assume the following facts. The hybrid will initially cost an additional $6,500 above the cost of a traditional...
help with B please CALCULATOR FULL SCREEN PRINTER VERSION 4 BACK NEX Expand Your Critical Thinking 11-7 (Part Level Submission) Cost-volume-profit analysis can also be used in making personal financial decisions. For example, the purchase of a new car is one of your biggest personal expenditures. It is important that you carefully analyze your options. Suppose that you are considering the purchase of a hybrid vehicle. Let's assume the following facts. The hybrid will initially cost an additional $6,500 above...
help with C please CALCULATOR FULL SCREEN PRINTER VERSION BACK NEX Expand Your Critical Thinking 11-7 (Part Level Submission) Cost-volume-profit analysis can also be used in making personal financial decisions. For example, the purchase of a new car is one of your biggest personal expenditures. It is important that you carefully analyze your options. Suppose that you are considering the purchase of a hybrid vehicle. Let's assume the following facts. The hybrid will initially cost an additional $6,500 above the...
Your small remodeling business has two work vehicles. One is a small passenger car used for job-site visits and for other general business purposes. The other is a heavy truck used to haul equipment. The car gets 25 miles per gallon (mpg). The truck gets 10 mpg. You want to improve gas mileage to save money, and you have enough money to upgrade one vehicle. The upgrade cost will be the same for both vehicles. An upgraded car will get...
Problem 10-32 Replacement Decisions (LO2) Your small remodeling business has two work vehicles. One is a small passenger car used for job-site visits and for other general business purposes. The other is a heavy truck used to haul equipment. The car gets 25 miles per gallon (mpg). The truck gets 10 mpg. You want to improve gas mileage to save money, and you have enough money to upgrade one vehicle. The upgrade cost will be the same for both vehicles....
used for job-site visits and for other general business purposes. The other is a heavy truck used to haul equipment. The car gets 25 miles per gallon (mpg). The truck gets 10 mpg. You want to improve gas mileage to save money, and you have enough money to upgrade one vehicle. The upgrade cost will be the same for both vehicles. An upgraded car will get 40 mpg: an upgraded truck will get 12.5 mpg. The cost of gasoline is...
Your small remodeling business has two work vehicles. One is a small passenger car used for job-site visits and for other general business purposes. The other is a heavy truck used to haul equipment. The car gets 25 miles per gallon (mpg). The truck gets 10 mpg. You want to improve gas mileage to save money, and you have enough money to upgrade one vehicle. The upgrade cost will be the same for both vehicles. An upgraded car will get...
Stan Moneymaker needs 15 gallons of gasoline to top off his automobile's gas tank. If he drives an extra eight miles (round trip) to a gas station on the outskirts of town, Stan can save $0.10 per gallon on the price of gasoline. Suppose gasoline costs $3.00 per gallon and Stan's car gets 25 mpg for in-town driving. Each mile that Stan drives creates one pound of carbon dioxide. Each pound of CO2 has a cost impact of $0.02 on...