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1. ABC Taxi has an average fixed cost of $8,000 a year for each car. Each mile driven has variable cost $.40 and collect fares
1. ABC Taxi has an average fixed cost of $8,000 a year for each car. Each mile driven has variable cost $.40 and collect fares of $.60. How many miles a year does each car have to travel before making profit? Refer to the above problem: What is average cost when each car drives 50,000 miles? If ABC taxi service likes to reduce this Average cost by 10% how many miles it needs to drive.
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