Question

What is the crossover point in miles between the hybrid vehicle and the alternative vehicle from...

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

?$17,500

Vehicle Operating Cost per Mile

?$0.14

Useful Life of Vehicle

15

years

Miles per Year

14,000

Miles per Gallon

33

Average Fuel Price per Gallon

?$3.77

Alternative Vehicle

Vehicle Purchase Cost

?$19,500

Vehicle Operating Cost per Mile

?$0.10

Useful Life of Vehicle

15

years

Miles per Year

14,000

Miles per Gallon

35

Average Fuel Price per Gallon

?$3.77

The crossover? point, M, is

miles ?(round your response to the nearest whole? number).

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Homework Answers

Answer #1

The Crossover point (M) can be calculated by using an equation which can equate the total cost on the both the cars

Taking care of the fuel consumption

Hybrid Car

Miles per year: 14000

Miles per Gallon: 33

Total fuel use in one year: 425

Average fuel price per gallon: $3.77

Total fuel price per year: $1600

Total fuel price in 15 years: $24,000

Alternative Car

Miles per year: 14000

Miles per Gallon: 35

Total fuel use in one year: 400

Average fuel price per gallon: $3.77

Total fuel price per year: $1508

Total fuel price in 15 years: $22620

Lets take crossover point as X

17500 + .14X + 24000 = 19500 + .10X + 22620

41500 + .14X = 42120 + .10X

620 =.04X

X = 15,500 Miles

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