Carson City is buying new buses, and has to select from two models. Model A (diesel bus) costs $80,000 to buy, with a fuel efficiency of 12 miles/gallon. Its operating cost is $0.28/mile. Model B (a hybrid bus) costs $105,000 to purchase, but gets an average of 35 miles/gal. Its operating cost is $0.32/mile. The annual distance traveled is 25,000 miles, and the expected service life of either bus is 10 years. The average diesel price is $4.50/gallon. 1. The total life cycle cost for Bus A (in $) is:
A) 237,500
B) 243,750
C) 231,250
D) 238,750
E) 212,500
2. The total life cycle cost for Bus B (in $) is:
A) 202,857
B) 224,773
C) 219,091
D) 229,432
E) 217,143
3. How many miles does each bus have to travel for the life cycle costs to be equal:
A) 233,051
B) 180,412
C) 165,563
D) 121,107
E) 139,949
4. What is the crossover point in years:
A) 4.84
B) 9.32
C) 6.62
D) 7.21
E) 5.60

Following is a list of various costs incurred in producing replacement automobile parts. with respect to the production and sale of these auto parts, classify each cost as either variable costs, fixed costs, or mixed costs. 1. oil used in manufacturing equipment 2. plastic 3. property taxes, $165,000 per year on factory building and equipment 4. salary of plant manager 5. cost of labor for hourly workers 6. packaging 7. factory cleaning costs, $6,000 per month 8. metal 9. rent on warehouse, $10,000 per month plus $25 per square foot of storage used 10. property insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,000 11. straight-line depreciation on the production equipment 12. hourly wages of machine operators 13. electricity costs, $0.20 per kilowatt-hour 14. computer chip (purchased from a vendor) 15. pension cost, $1.00 per employee hour on the job

Suppose a ceiling fan manufacturer has the total cost function c(x) = 48x + 1485 and the total revenue function r(x) = 75x. (a) what is the equation of the profit function p(x) for this commodity? p(x) = (b) what is the profit on 35 units? p(35) = interpret your result. the total costs are less than the revenue. the total costs are more than the revenue. the total costs are exactly the same as the revenue. (c) how many fans must be sold to avoid losing money? fans

What two elements normally must exist before a person can be held liable for a crime