omework: HW4 (Chapters 5 & 5s) 9 of 16 (10 complete) ore: 0 of 2 pts roblem S5.5

Question

omework: HW4 (Chapters 5 & 5s) 9 of 16 (10 complete) ore: 0 of 2 pts roblem S5.5 Nhat is the crossover point in miles between the hybrid vehicle and the alternative vehicle from a competing auto manufacturer? Alternative Vehicle Hybrid Vehicle Vehicle Purchase Cost Vehicle Operating Cost per Mile$0.14 Useful Life of Vehicle Miles per Year Miles per Gallon Average Fuel Price per Gallon $17,500 Vehicle Operating Cost per Mile Useful Life of Vehicle Miles per Year Miles per Gallon $19,500 $0.08 15 years 15,500 15 years 15,500 $3.68 $3.68 The crossover point, M, ismiles (round your response to the nearest whole number).

Explanation / Answer

Computation of Cross over point: Total cost of Hybrid vehicle = Total cost of Alternative Vehicle Let the miles be M Total cost of Hybrid vehicle Purchase cost = $                                                                17,500 Variable cost = $0.14 M Fixed cost = ($3.68/33 miles)M Total cost = $17,500 +($0.14M) + [($3.68/33 miles)M] Total cost of Alternative Vehicle Purchase cost = $                                                                19,500 Variable cost = $0.08 M Fixed cost = ($3.68/36 miles)M Total cost = $19,500 +($0.08M) + [($3.68/36 miles) M] Total cost of Hybrid vehicle = Total cost of Alternative Vehicle $17,500 +($0.14M) + [($3.68/33 miles)M] = $19,500 +($0.08M) + [($3.68/36 miles) M] $17,500 +($0.14M) + (0.111515 M) = $19,500 +($0.08M) +(0.102222 M) M = 28863 Therefore cross over point is (M) : 28,863 miles

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.