Question

What is the crossover point in miles between the hybrid vehicle and the alternative vehicle from a competing auto manufacturer? Hybrid Vehicle Vehicle Purchase Cost Vehicle Operating Cost per Mile Useful Life of Vehicle Alternative Vehicle $17.500 Vehicle Purchase Cost Vehicle Operating Cost per Mile Useful Life of Vehicle Miles per Year Miles per Galon Average Fuel Price per Gallon $19.500 $0.14 $0.10 15 years 15 years 16.000 35 Miles per Year Miles per Gallon 16,000 33 Average Fuel Price per Gallon $3.77 $3.77 The crossover point, M, is miles (round your respon5e to the nearest whole number). ) 1) Enter your answer in the answer box and then click Check Answer 10: 1) All parts showing /1) Clear All Check Answ

Answer 1

Total Cost = Fixed cost +Variable cost per mile*No of miles

Hybrid vehicle total cost = 17500 + (0.14+  3.77/33)*Q = 17500 + 0.254Q

Alternative vehicle = 19500 + (0.1+3.77/35)Q= 19500 + 0.208Q

By equaling the total costs we get Cross over point

17500 + 0.254Q = 19500 + 0.208Q

Q = 43478 Miles