User Account

All Pages

What is variable gasoline cost of going one mile in car

Assignment Help Accounting Basics
Reference no: EM133050484

Question - 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 $3,690 above the cost of a traditional vehicle. The hybrid will get 40 miles per gallon of gas, and the traditional car will get 30 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?

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.

How many miles would you have to drive in order to break even on your investment in the hybrid car?

Reference no: EM133050484

Questions Cloud

Firm readies for offshore expansion : You have just joined a candy company as VP, Global Business. Your boss, Mr. Freddie Mercury has asked you to create a short report for him as he is considering
Determine the deficit of the pension plan at January : Determine the deficit of the pension plan at January 1, 2020, and calculate its December 31, 2020 deficit balance directly
Business level strategies : 1. Provide 2 corporate level strategies and why each is important to the organization.
Case study-robert bosch corruption : Instructions: For this case study assignment please read the case study. After reading the case study determine the key issues presented in the case study.
What is variable gasoline cost of going one mile in car : 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
Determine the type of conflict : Think of a conflict you are currently in (one that you are willing to share with the class) or if you are not currently in any conflict, one that you have recen
Enhance disney growth : What strategies did Robert Iger deploy to enhance Disney's growth?
Explain the hr side of dominos : - How has Dominos differentiated their menu to become successful for high quality fast food, what were some struggles?
Calculate the dividend yield : The following information is given: Outstanding shares of common stock 20,000 shares net income for the year $80,600. Calculate the dividend yield

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd