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Case 2: You are considering having a new fuel-saving device installed in your car. The installed cost of the device is $240 paid up front,
Case 2: You are considering having a new fuel-saving device installed in your car. The installed cost of the device is $240 paid up front, plus a monthly fee of $15. you can terminate use of the device any time without penalty. you estimate that the device will reduce your average monthly gas consumption by 20%, which, assuming no change in your monthly mileage, translates into a savings of about $28 per month. You are planning to keep the car for 2 more years and wishes to determine whether you should have the device installed in your car. To assess the financial feasibility of purchasing the device, you calculates the number of months it will take for you to break even. Letting the installed cost of $240 represent the fixed cost (FC), the monthly savings of $28 represent the benifit - revenue (P), and the monthly fee of $15 represent the variable cost (VC). Should you have the fuel-saving device installed in your car
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