Northeastern University Operations And Supply Chain Management Assignment Help - Fred Carson

Question - Fred Carson delivers parts for several local auto parts stores. He charges clients $0.75 per mile
driven. Fred has determined that if he drives 2,000 miles in a month, his average operating cost is
$0.55 per mile. If he drives 4,000 miles in a month, his average operating cost is $0.40 per mile. Fred
has used the high-low method to determine that his monthly cost equation is: Total Cost = $600 +
$0.25 per Mile.

1. Determine how many miles Fred needs to drive to break even. (Round intermediate calculations to
2 decimal places.)

Break-even units:_______miles

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