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(Solved): BREAK EVEN PROBLEMS 1. Two alternatives are being considered. The following data apply: a. The BTRR ...



BREAK EVEN PROBLEMS 1. Two alternatives are being considered. The following data apply: a. The BTRR is \( 25 \% \). Use break even techniques to determine at what volume machine B should be purchased. Construct the cost vs volume curve and show the break even point. b. The BTRR is \( 40 \% \). Repeat part a. 2. You are looking at a new car. The following data have been obtained for 3 alternatives. The BTRR is \( 15 \% \). a. Assume the price of fuel is \( \$ 3.00 \) per gallon. Find the relevant break even points in miles per year. Construct the cost vs miles curves and show the break even points. Construct the curves by hand on engineering problems paper and then use Excel and print out the curves. b. Assume you drive 15,000 miles per year. Find the break even points in the price of fule. Construct the cost vs fuel price curves and show the break even points. Construct the curves by hand on engineering problems paper and then use Excel and print out the curves. c. Assume you are the policy maker responsible for providing incentives for people to drive more fuel efficient cars. What would you do?



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