Question
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
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 $4,050 above the cost of a traditional vehicle. The hybrid will get 50 miles per gallon of gas, and the traditional car will get 40 miles per gallon. Also, assume that the cost of gas is $3.60 per gallon. Using the facts above, answer the following questions.
How many miles would you have to drive in order to break even on your investment in the hybrid car?
enter the break even miles | miles |
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