Answered step by step
Verified Expert Solution
Question
1 Approved Answer
letter c was wrong if you could help me id really appreciate it! Cost-volume-profit analysis can also be used in making personal financial decisions. For
letter c was wrong if you could help me id really appreciate it!
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. What is the variable gasoline cost of going one mile in the hybrid car? What is the variable cost of going one mile in the traditional car?(Round answers to 2 decimal places, e.g. 0.25.) Hybrid car Traditional car Variable gasoline cost $ 0.72 $ 0.09 e Textbook and Media Attempts: 5 of 5 used (b) Your answer is correct. 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 savings per mile $ 0.02 e Textbook and Media Attempts: 2 of 5 used (c) Your answer is incorrect. How many miles would you have to drive in order to break even on your investment in the hybrid car? 225000 miles Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started