Need some help understanding how to answer this question. thanks for the help. W

Question

Need some help understanding how to answer this question. thanks for the help.

What is the crossover point in miles between the hybrid vehicle and the alternative vehicle from a competing auto manufacturer? Hybrid Vehicle Vehicle Purchase Cost Vehicle Operating Cost per Mile Useful Life of Vehicle Miles per Year Miles per Gallon Average Fuel Price per Gallon $18,000 $0.13 14 years 16,000 31 $3.77 Alternative Vehicle Vehicle Purchase Cost Vehicle Operating Cost per Mile Useful Life of Vehicle Miles per Year Miles per Gallon Average Fuel Price per Gallorn $19,500 $0.10 14 years 16,000 36 $3.77 The crossover point, M, is miles (round your response to the nearest whole number)

Explanation / Answer

Cross over rate is the breakeven mileage for two vehicle at the given parameters.Let he cross over point is M where mileage for two vehicle will be equal. so

18,000+(3.77/31+0.13)M= 19,500+(3.77/36+0.10)M

18,000+0.2516M= 19,500+0.2047M

0.2516M-0.2047M= 19,500-18,000

0.0469M= 1,500

M= 1500/0.0469= 31,983 miles

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

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