g raj drives his own car on company business. his own company reimburses him at the rate of 42 cents per mile. raj estimates that his fixed costs per year such as taxes, insurance, and depreciation are $2025. the variable costs such as gas, oil, and maintenance are about 13.3 cents per mile. how many miles must raj drive to break even

He must drive 7,055.75 miles to break even.

Explanation:

To calculate the number of miles to drive to break-even, we need to use the following break-even point formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 2,025 / (0.42 - 0.133)

Break-even point in units= 2,025 / 0.287

Break-even point in units= 7,055.75

He must drive 7,055.75 miles to break even.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer; risk transference;