Using variable expenses, When you determine how much money

Using variable expenses

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Reference no: EM131681540

When you determine how much money it costs per mile to drive to a specific destination, you are using "variable expenses." You might refer to variable expenses in many different scenarios; for example, perhaps you live far away from the office and your employer doesn't reimburse commute costs.

A. Suppose you are hired for an exciting job at a company that is 30 miles away from your home. Using the current cost of gas in your zip code, calculate what it would cost you to commute to this job five days a week. How much would you have to make per hour at this job in order to justify the commute?

B. Answer the above question again, imagining that it is possible to commute to one of the company's other two offices: one is 15 miles away and one is 50 miles away.

C. Which commute scenario would you be most interested in? Would you prefer a shorter commute with lower salary or a longer commute with a higher salary? Explain how variable expense calculations helped you reach your decision.

Reference no: EM131681540

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