User Account

All Pages

What is variable gasoline cost of going one mile in hybrid

Assignment Help Financial Accounting
Reference no: EM132968285

Cost-volume-profit analysis can also be used in making personal financial decisions. For example, the purchase of a new car is one of your biggest personal expenditures. It is important that you carefully analyze your options.

Suppose that you are considering the purchase of a hybrid vehicle. Let's assume the following facts. The hybrid will initially cost an additional $4,140 above the cost of a traditional vehicle. The hybrid will get 30 miles per gallon of gas, and the traditional car will get 20 miles per gallon. Also, assume that the cost of gas is $3.60 per gallon.

Problem (a) What is the variable gasoline cost of going one mile in the hybrid car? What is the variable cost of going one mile in the traditional car? (Round answers to 2 decimal places, e.g. 0.25.)

Problem (b) Using the information in above part, if "miles" is your unit of measure, what is the "contribution margin" of the hybrid vehicle relative to the traditional vehicle? That is, express the variable cost savings on a per-mile basis. (Round answer to 2 decimal places, e.g. 0.25.)

Problem (c) How many miles would you have to drive in order to break even on your investment in the hybrid car?

Reference no: EM132968285

Questions Cloud

Provide the accounting journal entries : Provide the accounting journal entries (2018 ~ 2020) to record the change in the value of the asset
How find number of units that would have to be sold : What would the selling price have to be in order to reach the stockholders' desired profit level? Blossom Company had $215,300 of net income in 2021.
Calculate the variances of whateva ltd : Calculate the variances of Whateva Ltd for direct materials and direct manufacturing labour in August using the actual 25 500 labour hours
Idea of materiality would impact civil and criminal cases : Compare and contrast how you think the idea of materiality would impact both civil and criminal cases
What is variable gasoline cost of going one mile in hybrid : What is the variable gasoline cost of going one mile in the hybrid car? What is the variable cost of going one mile in the traditional car?
Prepare the financing activities section of rivers statement : Prepare the financing activities section of Rivers' statement of cash flows. In preparation for developing its statement of cash flows for the year
What is the value of the stock price today : What is the value of the stock price today? The firm has $181.56 million of market-value debt, but it has no preferred stock or any other outstanding claims.
How to complete blocks on a commission-only paid employee : There are specific rules that apply to issuing, Explain how to complete Blocks 6, 12, 15B and 15C on a commission-only paid employee's ROE.
List four types of earnings that would be included in block : List four types of earnings that would be included in Block 15A and/or Block 15B and state, whether each earning is insurable for earnings and/or hours

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd