Question

In a move to provide additional sales for U.S. car manufacturers, the White House announced the purchase of 17,600 new fuel-efficient vehicles for the federal fleet. Suppose the new fleet, which includes 2,500 hybrid sedans, will cost $265 million. As an accountant in the White House Budget Office (WHBO), you have been asked to calculate the following:(a)If each hybrid vehicle will have an average cost of $22,000, what will be the average cost per non-hybrid vehicle? Round to the nearest whole dollar.$ (b)Suppose furthermore, the White House said that by replacing less efficient vehicles, the government will reduce gasoline consumption by 1.8 million gallons per year and prevent 27 million pounds of carbon dioxide from entering the atmosphere. On average, how many gallons of gasoline and how many pounds of carbon dioxide will be "saved" per year per vehicle? Round to the nearest whole gallon and whole pound.gasoline saved in gal?carbon dioxide saved in lb?

Answer 1

Given

the White House announced the purchase of 17,600 new fuel-efficient vehicles for the federal fleet

new fleet, which includes 2,500 hybrid sedans, will cost $265 million.

Find

a) what will be the average cost per non-hybrid vehicle?

b) how many gallons of gasoline and how many pounds of carbon dioxide will be "saved" per year per vehicle

Step-by-step explanation

a) If each hybrid vehicle will have an average cost of $22,000 .

each hybrid car costs =

`$ 22,000 $*2500=55,000,000`

total cost of non - hybrid cars = $265,000,000 - $55,000,000 = $210,000,000

Average cost of non hybrid car = $210,000,000/(17,600-2,500) = $13,907.28 per non hybrid car = $13907

b) 1.8 million gallons per year and prevent 27 million pounds of carbon dioxide from entering the atmosphere.

1,800,000 gallons of gasoline saved per year/17,600 = 102.27 = 102 gallons of gasoline saved per car

27,000,000 pounds of carbon dioxide / 17,600 = 1,534.09 = 1534 pounds of carbon dioxide saved per car

Final Answer

Hence , Average cost of non hybrid car is $13907

b) 102 gallons of gasoline saved per car and 1534 pounds of carbon dioxide saved per car