Zipcar (www.zipcar.com) is a car-sharing club founded in Cambridge, Massachusetts, in 1999. The club members pay an annual fee and then have the opportunity to rent from a pool of available cars for a fixed hourly or daily rate. Zipcar is located largely in select metropolitan areas such as Boston, San Francisco, and Washington, D.C. Members, called "Zipsters," make reservations for a car on the Zipcar website and then use an access card to open the vehicle. The vehicle has a "home base" parking spot where the driver picks up and returns the vehicle. The club-which operates in more than 500 cities and towns, at more than 600 college campuses, and at 50 airports-has grown to more than 1 million members since its initial public offering in April 2011. The Zipcar website provides details on membership and mentions a $7.00 monthly membership fee. A car can be rented for an hourly or daily rate. While the actual rate can vary, a car can be rented for about $9.00 per hour, which includes 20 free miles, or for a $73 daily rate, which includes 180 free miles per day, and a charge of $0.45 per mile for each mile over 180. Required: 1. Assume you will take a two-day trip to visit some friends over the weekend and you will drive 400 miles. What is the total cost of this trip? 2. You are trying to estimate your monthly spending on your Zipcar membership. You plan to make four weekly trips to run errands like grocery shopping, going to the pharmacy, etc. Each trip will take about two hours and be about 15 miles. You will also take a trip over a three-day weekend to visit your family and expect the trip will cover a total of 450 miles. How much do you expect your Zipcar costs to be for the coming month? 3. Identify each car-related cost as fixed or variable. 4. Identify each listed item as a competitive advantage or challenge.
Zipcar (www.zipcar.com) is a car-sharing club founded in Cambridge, Massachusetts, in 1999. The club members pay an annual fee and then have the opportunity to rent from a pool of available cars for a fixed hourly or daily rate. Zipcar is located largely in select metropolitan areas such as Boston, San Francisco, and Washington, D.C. Members, called "Zipsters," make reservations for a car on the Zipcar website and then use an access card to open the vehicle. The vehicle has a "home base" parking spot where the driver picks up and returns the vehicle. The club-which operates in more than 500 cities and towns, at more than 600 college campuses, and at 50 airports-has grown to more than 1 million members since its initial public offering in April 2011. The Zipcar website provides details on membership and mentions a $7.00 monthly membership fee. A car can be rented for an hourly or daily rate. While the actual rate can vary, a car can be rented for about $9.00 per hour, which includes 20 free miles, or for a $73 daily rate, which includes 180 free miles per day, and a charge of $0.45 per mile for each mile over 180. Required: 1. Assume you will take a two-day trip to visit some friends over the weekend and you will drive 400 miles. What is the total cost of this trip? 2. You are trying to estimate your monthly spending on your Zipcar membership. You plan to make four weekly trips to run errands like grocery shopping, going to the pharmacy, etc. Each trip will take about two hours and be about 15 miles. You will also take a trip over a three-day weekend to visit your family and expect the trip will cover a total of 450 miles. How much do you expect your Zipcar costs to be for the coming month? 3. Identify each car-related cost as fixed or variable. 4. Identify each listed item as a competitive advantage or challenge.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer required 2- the question I have posted. The first picture is just for the information
Transcribed Image Text:Zipcar (www.zipcar.com) is a car-sharing club founded in Cambridge, Massachusetts, in 1999. The club members pay an annual fee and
then have the opportunity to rent from a pool of available cars for a fixed hourly or daily rate. Zipcar is located largely in select
metropolitan areas such as Boston, San Francisco, and Washington, D.C. Members, called "Zipsters," make reservations for a car on
the Zipcar website and then use an access card to open the vehicle. The vehicle has a "home base" parking spot where the driver
picks up and returns the vehicle. The club-which operates in more than 500 cities and towns, at more than 600 college campuses,
and at 50 airports-has grown to more than 1 million members since its initial public offering in April 2011.
The Zipcar website provides details on membership and mentions a $7.00 monthly membership fee. A car can be rented for an hourly
or daily rate. While the actual rate can vary, a car can be rented for about $9.00 per hour, which includes 20 free miles, or for a $73
daily rate, which includes 180 free miles per day, and a charge of $0.45 per mile for each mile over 180.
Required:
1. Assume you will take a two-day trip to visit some friends over the weekend and you will drive 400 miles. What is the total cost of this
trip?
2. You are trying to estimate your monthly spending on your Zipcar membership. You plan to make four weekly trips to run errands like
grocery shopping, going to the pharmacy, etc. Each trip will take about two hours and be about 15 miles. You will also take a trip over a
three-day weekend to visit your family and expect the trip will cover a total of 450 miles. How much do you expect your Zipcar costs to
be for the coming month?
3. Identify each car-related cost as fixed or variable.
4. Identify each listed item as a competitive advantage or challenge.
Transcribed Image Text:Required 1 Required 2
You are trying to estimate your monthly spending on your Zipcar membership. You plan to make four weekly trips to run
errands like grocery shopping, going to the pharmacy, etc. Each trip will take about two hours and be about 15 miles. You will
also take a trip over a three-day weekend to visit your family and expect the trip will cover a total of 450 miles. How much do
you expect your Zipcar costs to be for the coming month?
Required 3 Required 4
Total estimate cost for the month
< Required 1
Required 3 >
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