Willie Lohmann travels from city to city for business. Every other year he buys a used car for about $15,000. The dealer allows about $8000 as a tradein allowance, so Willie spends $7000 every other year for a car. Willie keeps accurate records of his expences, which total 32.3 per mile. Willie's employer has two plans to reimburse car expenses: Actual expenses: Willie will recieve all his operating expenses, and $3500 each year for the car's decline in value. Standard mileage rate: Willie will recieve 56.5 per mile but no operating expenses and no depreciation allowance. If Willie travels 18,000 miles per year, which method gives him the larger reimbursement? At what annual mileage do the two methods give the same reimbursement?

a. The method that gives Willie Lohmann the larger reimbursement is Plan A.

b. The annual mileage where the two methods give the same reimbursement to Willie is 144.63 miles.

Data and Calculations:

Cost of used car =       $15,000

Trade-in Allowance        8,000

Amount spent yearly = $7,000

Total expenses per mile = $32.3

Amount reimbursed with Plan A = $32.3 m + $3,500

Amount reimbursed with Plan B = $56.5 m

where m = per mile

Distance traveled per year = 18,000

Reimbursement from Plan A = $584,900 ($32.3 x 18,000 + $3,500)

Reimbursement from Plan B = $1,017,000 ($56.5 x 18,000)

For Plan A to equal Plan B, $56.5 m = $32.3 m + $3,500

From the equation, $56.5 m - $32.3 m = $3,500

Therefore, $24.2 m = $3,500

m = 144.63 ($3,500/$24.2)

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Plan B is better.

Computation:

Total travel = 180,00 miles

Plan A:

Actual Expenses

Total Reimbursement = $3,500 + [18,000 x 32.3]

Total Reimbursement = $3,500 + $5,814

Total Reimbursement = $9,314

Plan B:

Standard Mileage

Total Reimbursement = 18000 x 56.5

Total Reimbursement = $10,170

So,

Plan B is better.

Difference in fixed reimbursement  = $3500 Plan A

Difference in mileage rate  = 56.5 - 32.3

Difference in mileage rate = 24.2 cents per mile

Difference in mileage rate = $0.242 per mile

Difference in fixed reimbursement  = $3500 Plan A

steering wheels are always situated on the left side of the car.

always drive on the right side of the road.

white lines separate lanes of traffic traveling the same direction.

hashed or broken lines means you may change lanes when it is safe.

solid white lines mean stay in your lane.

yellow lines separate traffic moving in opposing directions.

hashed or broken yellow lines mean you can carefully pass, paying attention to oncoming traffic.

never cross a solid yellow line (or double yellow line).

when turning left at an intersection, pass in front of any cars that are turning left from the opposing direction (do not try to pass behind them).

use the left lane to pass other cars traveling your direction.

do not pass in the right lane unless absolutely necessary.

if you are driving in the far left hand lane and someone would like to pass you, move over to the right lane when it is safe to do so and allow them to pass.

you must always yield to pedestrians.

come to a complete stop whenever you see pedestrians trying to cross the street.

never pass a school bus if it has flashing red lights. wait until the lights have stopped.

be aware of bicyclists. often they share the road with cars and are supposed to also follow general traffic laws.

be particularly careful about driving in cities with bike lanes -- always check before turning that a bike is not coming.

it is mandatory to pull over or stop at an intersection to allow an emergency vehicle to pass you if you see one traveling with lights flashing and/or a siren running.

do not overuse your car horn. horns are used almost exclusively for emergency situations or for when you feel unsafe.

explanation:

i would say iii (3) because in order to compare a price you have to use as a reference other near stores because it's its

hope i explained myself