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Suppose that you are considering the purchase of a hybrid vehicle. Let's assume the following facts. The hybrid will initially cost. an additional $6,000 above
Suppose that you are considering the purchase of a hybrid vehicle. Let's assume the following facts. The hybrid will initially cost. an additional $6,000 above the cost of a traditional vehicle. On average, the hybrid will get 50 miles per gallon of gas, and the traditiona car will get 20 miles per gallon. Also, assume that the cost of gas is $2.00 per gallon. Using the facts above, answer the following questions. For gasoline, what is the unit variable cost of going one mile in the hybrid car? What is the unit variable cost of going one mile 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 differential between the hybrid vehicle and the traditional vehicle? That is, express the variable cost savings on a per-mile basis. (Round answer to 2 decimal places, eg. 0.25.) Savings per mile $ eTextbook and Media How many miles would you have to drive in order to break even on your investment in the hybrid car? the tracitional car? (Kouna answers to aecimai praces, eg. U.ZS.) eTextbook and Media Using the information in above part, if "miles" is your unit of measure, what is the differential between the hybrid vehicle and the traditional vehicle? That is, express the variable cost savings on a per-mile basis. (Round answer to 2 decimal ploces, es. 0.25) Savings per mile eTextbook and Media How many miles would you have to drive in order to break even on your investment in the hybrid car? miles
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