subject
Business, 06.05.2020 08:36 kingalex7575

Amy Lloyd is interested in leasing a new Honda and has contacted three automobile dealers for pricing information. Each dealer offered Amy a closed-end 36-month lease with no down payment due at the time of signing. Each lease includes a monthly charge and a mileage allowance. Additional miles receive a surcharge on a per-mile basis. The monthly lease cost, the mileage allowance, and the cost for additional miles follow:

Dealer Monthly Cost Mileage Allowance Cost per Additional Mile
Hepburn Honda $299 36,000 $0.15
Midtown Motors $310 45,000 $0.20
Hopkins Automotive $325 54,000 $0.15

Amy decided to choose the lease option that will minimize her total 36-month cost. The difficulty is that Amy is not sure how many miles she will drive over the next three years. For purposes of this decision, she believes it is reasonable to assume that she will drive 12,000 miles per year, 15,000 miles per year, or 18,000 miles per year. With this assumption Amy estimated her total costs for the three lease options. For example, she figures that the Hepburn Honda lease will cost her 36($299) + $0.15(36000 - 36000) = $10,764 if she drives 12,000 miles per year, 36($299) + $0.15(45000 - 36000) = $12,114 if she drives 15,000 miles per year, or 36($299) + $0.15(54000 - 36000) = $13,464 if she drives 18,000 miles per year.

Required:
Construct a payoff table for Amy's problem.

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 20:00
Jorge is a manager at starbucks. his operational plan includes achieving annual sales of $4,000,000 for his store. with only one month left to end of the fiscal year, jorge realizes that he won't reach his annual sales goal. what are his options?
Answers: 2
question
Business, 22.06.2019 06:40
Vintage fun reproduces oldminusfashioned style roller skates and skateboards. the annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. the company has traditionally used direct labor hours to allocate its overhead to products. roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. the total estimated overhead for the period is $114,300. the company is looking at the possibility of changing to an activityminusbased costing system for its products. if the company used an activityminusbased costing system, it would have the following three activity cost pools: the overhead cost per skateboard using the traditional costing system would be closest to: a. $9.31. b. $65.31. c. $25.05. your answer is not correct.d.
Answers: 2
question
Business, 22.06.2019 11:30
10.     lucy is catering an important luncheon and wants to make sure her bisque has the perfect consistency. for her bisque to turn out right, it should have the consistency of a. cold heavy cream. b. warm milk. c. foie gras. d. thick oatmeal. student d   incorrect
Answers: 2
question
Business, 23.06.2019 03:10
Wisconsin snowmobile corp. is considering a switch to level production. cost efficiencies would occur under level production, and after tax costs would decline by $36,000, but inventory would increase by $300,000. wisconsin snowmobile would have to finance the extra inventory at a cost of 13.5 percent.a. determine the extra cost or savings of switching over to level production. should the company go ahead and switch to level production? b how low would interest rates need to fall before level production would be feasible?
Answers: 1
You know the right answer?
Amy Lloyd is interested in leasing a new Honda and has contacted three automobile dealers for pricin...
Questions
question
History, 12.12.2020 16:10
question
Mathematics, 12.12.2020 16:10
question
Mathematics, 12.12.2020 16:10
question
History, 12.12.2020 16:10
question
Mathematics, 12.12.2020 16:10
Questions on the website: 13722365