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Aldo Redondo drives his own car on company business. His employer reimburses him for such travel at the rate of 45 cents per mile. Aldo estimates that his fixed costs per year such as taxes, insurance, and depreciation are $2,000. The direct or variable costs such as gas, oil, and maintenance average about 18.5 cents per mile.
How many miles must he drive to break even? (Do not round intermediate calculations. Roundup your answer to the next whole number.)
Break even point miles
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Briefly describe a business with which you are familiar and explain how it might use each of the five ways shown below to adjust its short-term capacity levels:
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