Hartley Auto Supply delivers parts to area auto service centers and is replacing

Question

Hartley Auto Supply delivers parts to area auto service centers and is replacing its fleet of delivery vehicles. It considers the gasoline engine truck and an alternative hybrid vehicle with the specifications provided below. EEB Click the icon to view the information about the gasoline engine truck. EE Click the icon to view the information about the hybrid vehicle. a) What is the crossover point in miles? The crossover point in miles is miles. (Round your response to the nearest whole number.)

Explanation / Answer

Computation of Cross over point: Total cost of gasoline engine truck = Total cost of hybrid vehicle Let the miles be x Total cost of gasoline engine truck Purchase cost = $                                                                38,000 Variable cost = $0.14 x Fixed cost = ($2.88/35 miles) x Total cost = $38,000 +($0.14x) + [($2.88/35 miles) x] Total cost of hybrid vehicle Purchase cost = $                                                                41,000 Variable cost = $0.11 x Fixed cost = ($2.88/51 miles) x Total cost = $41,000 +($0.11x) + [($2.88/51 miles) x] Total cost of gasoline engine truck = Total cost of hybrid vehicle $38,000 +($0.14x) + [($2.88/35 miles) x] = $41,000 +($0.11x) + [($2.88/51 miles) x] $38,000 +($0.14x) + (0.082286 x) = $41,000 +($0.11x) + (0.056471 x) x = 53749 Therefore cross over point is : 53,749 miles

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

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