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Cost-volume-profit analysis can also be used in making personal financial decisions. For example, the purchase of a new car is one of your biggest personal

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Cost-volume-profit analysis can also be used in making personal financial decisions. For example, the purchase of a new car is one of your biggest personal expenditures. It is important that you carefully analyze your options. Suppose that you are considering the purchase of a hybrid vehicle. Let's assume the following facts. The hybrid will initially cost an additional $5,500 above the cost of a traditional vehicle. On average, the hybrid will get 45 miles per gallon of gas, and the traditional car will get 27 miles per gallon. Also, assume that the cost of gas is $2.70 per gallon. Using the facts above, answer the following questions, (a) Your answer is correct. For gasoline, what is the unit variable cost of going one mile in the hybrid car? What is the unit varlable cost of going one mile in the traditional car? (Round onswers to 2 decimal ploces, e.g. 0.25) Using the information in above part, if "miles" is your unit of measure, what is the differential between the hybrid vehicle and th. traditional vehicle? That is, express the variable cost savings on a per-mile basis. (Round answer to 2 decimal places, eg. 0.25.) Savings per mile $ Attempts: 0 of 2 used (c) The parts of this question must be completed in order. This part will be available when you complete the part. above

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