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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 $4,230 above the cost of a traditional vehicle. The hybrid will get 40 miles per gallon of gas, and the traditional car will get 30 killes per gallon. Also, assume that the cost of gas is $3.60 per gallon. Using the facts above, answer the following questions. (a) What is the varlable gasoline cost of going one mille in the hybrid car? What is the variable cost of going one mille in the traditional car? (Round answers to 2 decimal places, eg. 0.25.) Using the information in above part, if "miles" is your unit of measure, what is the "contribution margin" of the hybrid vehicle relative to the traditional vehicle? That is, express the variable cost savings on a per-mile basis. (Round answer to 2 decimal places. e.g. 0.25.) The saviniss per mile 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 $4,230 above the cost of a traditional vehicle. The hybrid will get 40 miles per gallon of gas, and the traditional car will get 30 killes per gallon. Also, assume that the cost of gas is $3.60 per gallon. Using the facts above, answer the following questions. (a) What is the varlable gasoline cost of going one mille in the hybrid car? What is the variable cost of going one mille in the traditional car? (Round answers to 2 decimal places, eg. 0.25.)

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