7 Aldo Redondo drives his own car on company business. His employer reimburses him for such travel...
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7 Aldo Redondo drives his own car on company business. His employer reimburses him for such travel at the rate of 36 cents per mile. Aldo estimates that his fixed costs per year such as taxes, insurance, and depreciation are $2,052. The direct or variable costs such as gas, oil, and mainte- nance average about 14.4 cents per mile. How many miles must he drive to break even?
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Operations Management For Competitive Advantage
ISBN: 1572
11th Edition
Authors: Richard B. Chase, F. Robert Jacobs
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