You just bought a motorcycle for $8,000. You plan to ride the motorcycle for two years, and then sell it for $3,200. During this two-year period, you expect to ride the motorcycle 10,000 miles each year, and you expect the motorcycle to get 50 miles per gallon of gasoline. The annual cost of insurance is $960, registration costs are $80 (good for two years), and the price of gasoline is $2.50 per gallon. During this same two-year period, you will need to service your motorcycle five times, at $240 per service check, and obtain five oil changes. Each oil change costs $35. You will also need to replace your tires once during this two-year period, for a total cost of $40. a. Calculate the total fixed cost, total variable cost, and cost per mile for the two-year period, and then complete the table below. Instructions: Round your answers for total fixed cost and total variable cost to the nearest whole number. Round your answer for cost per mile to two decimal places. Total Fixed Cost Total Variable Cost Cost per Mile $ $ $ b. Suppose you want to lower the cost per mile. You should focus on: O variable costs, because they can be avoided. O fixed costs, because they represent a majority of the total costs. O variable costs, because they represent a majority of the total costs. O fixed costs, because they must be paid.
You just bought a motorcycle for $8,000. You plan to ride the motorcycle for two years, and then sell it for $3,200. During this two-year period, you expect to ride the motorcycle 10,000 miles each year, and you expect the motorcycle to get 50 miles per gallon of gasoline. The annual cost of insurance is $960, registration costs are $80 (good for two years), and the price of gasoline is $2.50 per gallon. During this same two-year period, you will need to service your motorcycle five times, at $240 per service check, and obtain five oil changes. Each oil change costs $35. You will also need to replace your tires once during this two-year period, for a total cost of $40. a. Calculate the total fixed cost, total variable cost, and cost per mile for the two-year period, and then complete the table below. Instructions: Round your answers for total fixed cost and total variable cost to the nearest whole number. Round your answer for cost per mile to two decimal places. Total Fixed Cost Total Variable Cost Cost per Mile $ $ $ b. Suppose you want to lower the cost per mile. You should focus on: O variable costs, because they can be avoided. O fixed costs, because they represent a majority of the total costs. O variable costs, because they represent a majority of the total costs. O fixed costs, because they must be paid.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
100%
Info in images. Please help with my questions and I will give a thumbs up! :)
![You just bought a motorcycle for $8,000. You plan to ride the motorcycle for two years, and then sell it for $3,200. During this two-year
period, you expect to ride the motorcycle 10,000 miles each year, and you expect the motorcycle to get 50 miles per gallon of
gasoline. The annual cost of insurance is $960, registration costs are $80 (good for two years), and the price of gasoline is $2.50 per
gallon.
During this same two-year period, you will need to service your motorcycle five times, at $240 per service check, and obtain five oil
changes. Each oil change costs $35. You will also need to replace your tires once during this two-year period, for a total cost of $400.
a. Calculate the total fixed cost, total variable cost, and cost per mile for the two-year period, and then complete the table below.
Instructions: Round your answers for total fixed cost and total variable cost to the nearest whole number. Round your answer for cost
per mile to two decimal places.
Total Fixed Cost
Total Variable Cost
Cost per Mile
$
$
$
b. Suppose you want to lower the cost per mile. You should focus on:
O variable costs, because they can be avoided.
O fixed costs, because they represent a majority of the total costs.
O variable costs, because they represent a majority of the total costs.
O fixed costs, because they must be paid.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd189a41b-e333-44f1-bba0-634d6683eed8%2F7f2750d6-8062-4c2c-92aa-ca7d8098abfd%2F922g4z_processed.png&w=3840&q=75)
Transcribed Image Text:You just bought a motorcycle for $8,000. You plan to ride the motorcycle for two years, and then sell it for $3,200. During this two-year
period, you expect to ride the motorcycle 10,000 miles each year, and you expect the motorcycle to get 50 miles per gallon of
gasoline. The annual cost of insurance is $960, registration costs are $80 (good for two years), and the price of gasoline is $2.50 per
gallon.
During this same two-year period, you will need to service your motorcycle five times, at $240 per service check, and obtain five oil
changes. Each oil change costs $35. You will also need to replace your tires once during this two-year period, for a total cost of $400.
a. Calculate the total fixed cost, total variable cost, and cost per mile for the two-year period, and then complete the table below.
Instructions: Round your answers for total fixed cost and total variable cost to the nearest whole number. Round your answer for cost
per mile to two decimal places.
Total Fixed Cost
Total Variable Cost
Cost per Mile
$
$
$
b. Suppose you want to lower the cost per mile. You should focus on:
O variable costs, because they can be avoided.
O fixed costs, because they represent a majority of the total costs.
O variable costs, because they represent a majority of the total costs.
O fixed costs, because they must be paid.
![There are economies of scale in ranching, especially with regard to fencing land. Suppose that barbed-wire fencing costs $16,000 per
mile to set up.
Instructions: Enter your answers as a whole number.
a. How much would it cost to fence a single property whose area is one square mile if that property also happens to be perfectly
square, with sides that are each one mile long?
2$
b. How much would it cost to fence exactly four such properties, which together would contain four square miles of area?
2$
c. Now consider how much it would cost to fence in four square miles of ranch land if, instead, it comes as a single large square that is
two miles long on each side.
2$
d. Which is more costly-fencing in the four, one-square-mile properties or the single four-square-mile property?
O The single four-square-mile property
O Four, one-square-mile properties](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd189a41b-e333-44f1-bba0-634d6683eed8%2F7f2750d6-8062-4c2c-92aa-ca7d8098abfd%2Fwif8hpq_processed.png&w=3840&q=75)
Transcribed Image Text:There are economies of scale in ranching, especially with regard to fencing land. Suppose that barbed-wire fencing costs $16,000 per
mile to set up.
Instructions: Enter your answers as a whole number.
a. How much would it cost to fence a single property whose area is one square mile if that property also happens to be perfectly
square, with sides that are each one mile long?
2$
b. How much would it cost to fence exactly four such properties, which together would contain four square miles of area?
2$
c. Now consider how much it would cost to fence in four square miles of ranch land if, instead, it comes as a single large square that is
two miles long on each side.
2$
d. Which is more costly-fencing in the four, one-square-mile properties or the single four-square-mile property?
O The single four-square-mile property
O Four, one-square-mile properties
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education