Calculate the total cost of driving to boston and back

Assignment Help Managerial Economics

Reference no: EM13921992

You are trying to decide whether to fly or drive from Rochester to Boston during your sum- mer visit. The trip is approximately 400 miles. You can purchase a round-trip nonstop flight for $230. The duration of each flight is 3.5 hours (seven hours in total). If you drive, it will take you approximately seven hours each way (14 hours in total). Your car gets 32 miles to the gallon and you expect gas will cost $3/gal. Tolls are $15 each way. You value your time at $15 per hour.

a. Calculate the total cost of driving to Boston and back.

b. Under these conditions, will you drive or fly?

c. What if you value your time at $20, rather than $15, per hour?

d. You are offered a deal for $180 total airfare if you take a flight with a one hour layover in NYC (total flying time does not change). Do you take the deal? Will this change your flying versus driving decision? (Use the $15 per hour value of time in the calculation.)

e. What are some other costs you may want to consider in this analysis?

f. If you were expecting a snow storm, how might this change your analysis? What are some other costs you may want to take into consideration?

Reference no: EM13921992

Questions Cloud

Draw the combined production possibilities curve : Draw the combined production possibilities curve for the two people assuming that they work eight hours. Put answering machines on the horizontal axis.

Total of all production costs : Wolsey Industries Inc. expects to maintain the same inventories at the end of 2016 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the vari..

The stock is classified as available : On February 15, Seacroft buys 6,000 shares of Kebo common stock at $28.73 per share plus a brokerage fee of $495. The stock is classified as available-for-sale securities. On March 15, Kebo declares a dividend of $1.25 per share payable to stockholde..

Structure of the term paper : Focus on content related analysis rather than on mathematical or statistical brilliance - Structure of the Term Paper

Calculate the total cost of driving to boston and back : Calculate the total cost of driving to Boston and back. Under these conditions, will you drive or fly? What if you value your time at $20, rather than $15, per hour?

Three different grades of gasoline : Following table gives the miles-per-gallon for four brands of cars using three different grades of gasoline. If the Total Sum of Squares equals 270, using the Two-Way ANOVA (at α = 5%), analyze if there is a significant difference in the means of ..

Dobson manufacturing company : Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $50,40..

Compute each company debt to assets ratio : Compute each company's debt to assets ratio, current ratio, and times interest earned (EBIT must be computed). Identify the company with the greater financial risk.

Cambridge manufacturing company applies manufacturing : Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost to be $290,700 and machine hours to be 15,300. Actual manufacturing overhead and..

User Account

All Pages