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In June 2008, when gasoline prices were at an all-time high, greater than S3.79 per gallon, Chrysler Motor Company promoted its Jeep vehicle with the

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In June 2008, when gasoline prices were at an all-time high, greater than S3.79 per gallon, Chrysler Motor Company promoted its Jeep vehicle with the offer of either S3,800 off the price of the vehicle or the guarantee that the buyer would not pay more than S2.60 per gallon of gas for the next three years (the details of the guarantee could vary by dealer). Required: 1. Assume that the Jeep vehicle you are interested in gets 15 mpg combined city/highway and that at the time of purchase you expected gasoline prices to average S4.96 per gallon over the next three years. How many miles would you have to drive the vehicle in the next three years to make the guarantee more attractive than the S3,800 discount? (Do not round intermediate calculations. Round your final answer up to the nearest whole number.) les to be driven over the three years must 2. Assume the same information as in requirement 1, except the average price of gas for the next three years is not known and you are likely to drive 8,000 miles per year. What would the breakeven gasoline price in the coming three years need to be to make you indifferent between the two options? (Round your answer to 3 decimal places.)

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