What is the crossover point in miles

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Reference no: EM131356488

Given the data in Problem and an alternative hybrid vehicle with the specifications shown below:

a) What is the crossover point in miles?

b) Which vehicle is has the lowest cost until the crossover point is reached?

Vehicle Purchase Cost

$29,000

Vehicle Operating Cost per Mile

$0.08

Useful Life of Vehicle

10 years

Miles per year

18,000

Miles per gallon

40

Average fuel Price per gallon

$2.55

Problem - Hartley Auto Supply delivers parts to area auto service centers and is replacing its fleet of delivery vehicles. What is the total vehicle life-cycle cost of this gasoline engine truck given the information provided in the following table?

Vehicle Purchase Cost

$25,000

Vehicle Operating Cost per Mile

$0.13

Useful Life of Vehicle

10 years

Miles per year

18,000

Miles per gallon

25

Average fuel Price per gallon

$2.55

Reference no: EM131356488

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