Question
1)Sarah Ouellette has leased a new automobile under a special lease plan. If she drives the car 1,000 miles or less during a one-month period,
1)Sarah Ouellette has leased a new automobile under a special lease plan. If she drives the car 1,000 miles or less during a one-month period, the lease payment is $250.If the mileage ranges between 1,001 and 1,500 miles, the lease payment becomes $300. If the mileage ranges between 1,501 and 2,000 miles, the lease payment rises to $350
Required:
a)What type of cost is the lease?
b)If sarah only drives the car between 1,200 and 1,400miles per month, then what type of cost does the lease effectively become?
Please notice that b) asks for what type of cost not the number it will be.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started