Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which car to buy? Mr . Fox is a taxi company owner. He is going to buy a new car. Cars M , C ,

Which car to buy? Mr. Fox is a taxi company owner. He is going to buy a new car. Cars M, C, R suite his needs and the prices are 25000,22000,23000 euros accordingly. His decision will be based on total costs per kilometer criterion. All the necessary data is given in the table below. Table Costs of the cars Costs Car Fixed costs per year M R Salary 132001320013200 Depreciation, 15% Car insurance, 8%*** Variable costs per 100 km Fuel 11.5013.1012.60 Oil 1.171.311.26 Maintenance and Repair 7.908.807.79 Tire wear 1.852.102.25 Calculate fixed, variable and total costs per kilometer for each car. Find a recommended price per kilometer, if 80% of it equals to the total costs per kilometer. Use the Data/Table tool to calculate an average criterion value and deviation from the average for each vehicle when the distance travelled per year changes from 10000 up to 40000 km in steps of 2000 km. build a chart of deviations to facilitate Mr. Fox decision. Write down your recomendations.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions