Eddie Felson is a salesman who gets reimbursed for driving his car while on business. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Eddie Felson is a salesman who gets reimbursed for driving his car while on business. The reimbursement rate is 36 cents per mile. Eddie's fixed costs per year are $2.200. Varlable costs average about 14.4 cents per mile. How many miles must he drive to break even? Go to at least three decimals for the intermediate steps (so 12.1786 would be rounded as 12.179), and round UP your answer to the next whole number (so both 18.2 and 18.5 would be rounded UP to 19). Break even point miles Eddie Felson is a salesman who gets reimbursed for driving his car while on business. The reimbursement rate is 36 cents per mile. Eddie's fixed costs per year are $2.200. Varlable costs average about 14.4 cents per mile. How many miles must he drive to break even? Go to at least three decimals for the intermediate steps (so 12.1786 would be rounded as 12.179), and round UP your answer to the next whole number (so both 18.2 and 18.5 would be rounded UP to 19). Break even point miles
Expert Answer:
Related Book For
Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
Posted Date:
Students also viewed these accounting questions
-
Larry Krovitz is a salesman who works at a used-car showroom in Sydney, Australia. Its the last week of July but he is yet to meet his sales target for the month. A customer, Harold Kumar, who wants...
-
Fred is a salesman who can sell enough to generate $200,000/year worth of profit for his company. He earns only $110,000 in compensation. What is the value of his outside or next best alternative? a....
-
A VMT tax of 4.4 cents per mile would internalize the external cost from collisions on average, but the external cost varies with the age of the driver. As shown in Table, the external cost of young...
-
Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 100,000 pounds of grade 9...
-
CodeHead Software Inc. does software development. One important activity in software development is writing software code. The manager of the WordPro Development Team determined that the average...
-
Escuha Company produces two type of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data...
-
Relate the concept of work measurement to the system implementation process.
-
On November 10, 2013, Lee Co. began operations by purchasing coffee grinders for resale. Lee uses the perpetual inventory method. The grinders have a 60-day warranty that requires the company to...
-
Explain how a reduction in lead time can help a supply chain reduce its inventory buffer without hurting customer service
-
You have been hired by Agirich Appraisal. Your next assignment is to provide the indicated value for a subject property using the cost approach. Be sure to adjust for land classification, financing...
-
Do you think that discrimination based on gender is a major contributor to a woman being paid less than a man for doing the exact same duties and what are the reasons you would use to support your...
-
How does the measurement of profit in amerchandising business differ fromthat in a service business?
-
A staff accountant has read several articles on the use of computers in auditing. She has read about test data and computer audit programs but does not fully understand what they are, when they are...
-
What is the purpose of (a) the ledger and (b) a chart of accounts?
-
Why is it important to use the sales returns and allowances account, rather than simply reducing the sales account, when goods are returned?
-
Under the perpetual inventory system, what entries are made to record purchases, purchase returns and allowances, discounts received, and freight costs?
-
27 of 30 Unsure Assume an investor constructs a portfolio by buying two shares of ABC stock at a Price of $35 per Share, a put option with strike price $40 on this stock, and simultaneously selling a...
-
What are the principal alloying elements in SAE 4340 steel?
-
1. Consider a thin used-car market. Someone just developed a device that can instantly identify the nearest plum in a used-car lot. The device works only once. The maximum amount that a consumer...
-
In analyses of the sources of economic growth, a common statistic reported about the U.S. economy is labor productivity. Defined as output per hour of work, labor productivity is a simple measure of...
-
1. As the price level increases, the demand for money ________and interest rates __________. 2. If output is above full employment, we expect wages and prices to rise, money demand to increase, and...
-
Name and briefly describe the two direct labor variances.
-
Wong Lee used 1,200 direct labor hours at an average wage rate of \($8.70\) to manufacture products that should have used 1,300 direct labor hours at an average wage rate of \($8.50\) per hour. What...
-
The variable overhead rate is \($5\) per direct labor hour; 31,000 direct labor hours were used to produce 7,500 units of product. The standard is 4 direct labor hours per unit. Actual, variable...
Study smarter with the SolutionInn App