The breakeven point between a hybrid car and alternative vehicle from competing automobile manufacturer. Introduction : The breakeven point is the point at which revenue and expenses are equal. The company will experience either loss or profit at break-even point. The breakeven point analysis is done to determine to feasibility of the project.

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Chapter 5.S, Problem 5P

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To determine: The breakeven point between a hybrid car and alternative vehicle from competing automobile manufacturer.

Introduction: The breakeven point is the point at which revenue and expenses are equal. The company will experience either loss or profit at break-even point. The breakeven point analysis is done to determine to feasibility of the project.

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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 Vehicle Operating Cost per Mile Useful Life of Vehicle Miles per Year Miles per Gallon Average Fuel Price per Gallon $17,500 $0.13 15 years 14,000 33 $3.77 Alternative Vehicle Vehicle Purchase Cost Vehicle Operating Cost per Mile Useful Life of Vehicle Miles per Year Miles per Gallon Average Fuel Price per Gallon The crossover point, M, is miles (round your response to the nearest whole number). $20,000 $0.08 15 years 14,000 35 $3.77

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 Vehicle Operating Cost per Mile Useful Life of Vehicle Miles per Year Miles per Gallon Average Fuel Price per Gallon The crossover point, M, is $18,000 $0.14 15 16,500 33 $3.95 Alternative Vehicle Vehicle Purchase Cost Vehicle Operating Cost per Mile Useful Life of Vehicle Miles per Year Miles per Gallon Average Fuel Price per Gallon miles (round your response to the nearest whole number). $20,000 $0.10 15 16,500 35 $3.95

Using the crossover mileage between the hybrid vehicle and the alternative vehicle from a competing auto manufacturer below, what is the crossover point in years? Hybrid Vehicle Vehicle Purchase Cost Vehicle Operating Cost per Mile Useful Life of Vehicle $18,000 $0.13 14 Alternative Vehicle Vehicle Purchase Cost Vehicle Operating Cost per Mile Useful Life of Vehicle 17,000 33 $3.56 $19,500 $0.10 14 17,000 36 $3.56 Miles per Year Miles per Year Miles per Gallon Miles per Gallon Average Fuel Price per Gallon Average Fuel Price per Gallon Given that the crossover mileage is 38,471 miles, the crossover point in years is 1.96 years (round your response to two decimal places).