Explanation:
To illustrate how the payoffs were computed, I will show how to compute the total cost of the Hepburn Honda lease assuming Amy drives 15,000 miles per year.
Total cost = (Total Monthly Charges) + (Total Additional Mileage Cost)
= 36 ( $299) + $0.15 (45,000 - 36,000)
= $10,764 + $1350
= $ 12,114
Answer:
Actual Miles Driven Annually
Dealer 12,000 15,000 18,000
Hepburn Honda $10,764 $12,114 $13,464
Midtown Motors $11,160 $11,160 $12,960
Hopkins Automotive $11,700 $11,700 $11,700