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Instead of selling or getting rid thier car after 6years, Danicadecide to start using their vehicle in a business. Danicawill be providing ride hailing service
Instead of selling or getting rid thier car after 6years, Danicadecide to start using their vehicle in a business. Danicawill be providing ride hailing service with their vehicle (UBER). See below for the graph of the total and average costs for the next 5years. The total fixed costs are 22000for this period. 1.8 1.6 1.4 Price Per KM($) 0.6 0.4 0.2 80 B C D KM DRIVEN (000s KM) PLEASE COMPLETE TABLE BELOW ONLY USING ABOVE INFORMATION A= 29100 C= 44/COO D= 47 COO What is the TFC at A? What is the AFC at A(2 Decimals)? If AVC is 0.6at A,what is the TVC? What is the ABNORMAL PROFITQuantity (PUT LETTER)? What is the OPERATIONAL LOSSQuantity (PUT LETTER)? ATC at Cis: $1.4/KM TC at Dis: $67680 Find the Marginal Cost between Cand D(Answer to 2 Decimals and always positive)?$ If Price of an UBER RIDE is $0.6/KM: What is the number of KMs Driven by Danica? KM What is the total Revenue at this point? $ What is the total Cost at this point if AVC is $0.6 per KM? $ What is the Profit/Loss at this point? $Danica Rizzo is considering purchasing a new car. The price of the car is $62000, and Danica hopes to keep it 6 years and then sell it for $14300. Based on past experience, Danica drives about 11,000 km per year and lives in a downtown apartment where they must pay a $30 per month parking fee.Danica has budgeted the following automobile expense items for the next 6 years: Expense Cost Fixed/Variable Gasoline(11.3L Per 100KM)($2.47 Per Liter) $[ Variable Licence/Registration $631 Fixed Insurance $5807 Fixed Maintenance $2640 Variable Tires ($1524 per set that last 64000KM) 5 Variable Parking (72 Months) $2160 Fixed Interest $4460 Fixed Depreciation (STRAIGHT LINE) $D Fixed CALCULATE THE FOLLOWING USING THE ABOVE INFORMATION: TOTAL KMS 66000KM TOTAL FIXED COSTS (TFC) 3 AVG. FIXED COSTS / KM sD TOTAL VARIABLE COSTS (TVC) $| | AVG. VARIABLE COSTS / KM 3]:] TOTAL COSTS (TC) 5___ AVG. TOTAL COSTS/KM sD Danicaand their friend Hanzelplan to drive the car to Fort McMurrayfor a trip. The one way trip from Edmonton to Fort McMurray is expected to be 441km, and they plan to split the car costs 50-50. Calculate the TOTAL cost of the trip under the assumption that costs are split as follows. Total KMs Drive on the ROUND trip to Fort McMurray DKM Cost of Gas Only sD Variable Cost Only $D Total Costs sD Below is a chart with different distances and their total cost for this vehicle please find the marginal costs for as distance increases. Distance(KM) Total Costs($) Marginal Costs($) PER KM 0 $D - 25000 569148 $D 50000 576884 51] 75000 $86199 s 100000 $95950 sD 125000 $106280 $D 150000 $119059 5D Let's fill in the table using the provided information: Average Total Abnormal Total Fixed Fixed Cost Variable Profit Operational Point Cost (TFC) (AFC) Cost (TVC) Quantity Loss Quantity A $29,000 B C $44,000 $1.40 D $47,000 $67,680 Now let's calculate missing values: 1. AFC at A: AFC = TFC / Quantity = $29,000 / 0 = Undefined (Cannot divide by zero) 2. TVC at A: TVC = TC - TFC = AVC * Quantity = $0.6 *0 = $0 3. Marginal Cost between C and D: MC = Change in TC / Change in Quantity = ($67,680 - $44,000) / (D - C) = $23,680 / (D - C) 4. Number of KMs Driven by Danica: Since price per KM is $0.6 and total revenue at point D is given, we can calculate the number of KMs driven by dividing total revenue by price per KM. 5. Total Revenue at this point: Given 6. Total Cost at this point if AVC is $0.6 per KM: Calculate TC at point D 7. Profit/Loss at this point: Calculate by subtracting total cost from total revenue. Let's proceed with the calculations
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