Which car to buy? Mr. Fox is a taxi company owner. He is going to buy a new car. Cars M, C, R suite his needs and the prices are 25000, 22000, 23000 euros accordingly. His decision will be based on total costs per kilometer criterion. All the necessary data is given in the table below. Table Costs of the cars Costs Car Fixed costs per year M R Salary 13200 13200 13200 Depreciation, 15% Car insurance, 8% *** Variable costs per 100 km Fuel 11.50 13.10 12.60 Oil 1.17 1.31 1.26 Maintenance and Repair 7.90 8.80 7.79 Tire wear 1.85 2.10 2.25 Calculate fixed, variable and total costs per kilometer for each car. Find a recommended price per kilometer, if 80% of it equals to the total costs per kilometer. Use the Data/Table tool to calculate an average criterion value and deviation from the average for each vehicle when the distance travelled per year changes from 10000 up to 40000 km in steps of 2000 km. build a chart of deviations to facilitate Mr. Fox decision. Write down your recomendations.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Which car to buy? Mr. Fox is a taxi company owner. He is going to buy a new car. Cars M, C, R suite his needs and the prices are 25000, 22000, 23000 euros accordingly. His decision will be based on total costs per kilometer criterion. All the necessary data is given in the table below. Table Costs of the cars Costs Car Fixed costs per year M R Salary 13200 13200 13200 Depreciation, 15% Car insurance, 8% *** Variable costs per 100 km Fuel 11.50 13.10 12.60 Oil 1.17 1.31 1.26 Maintenance and Repair 7.90 8.80 7.79 Tire wear 1.85 2.10 2.25 Calculate fixed, variable and total costs per kilometer for each car. Find a recommended price per kilometer, if 80% of it equals to the total costs per kilometer. Use the Data/Table tool to calculate an average criterion value and deviation from the average for each vehicle when the distance travelled per year changes from 10000 up to 40000 km in steps of 2000 km. build a chart of deviations to facilitate Mr. Fox decision. Write down your recomendations. 

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