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Question 1181231: Each month ZV Corp (Zebra Vehicles where all paint jobs are striped) makes 230 A vehicles which get 10mpg,500 B vehicles which get 20mpg,and 70 C vehicles which get 40mpg. Unfortunately, the government sets a standard where companies must “average”30mpg[this is called a CAFElaw]. Any company that falls short of the 30mpg standard must pay a penalty. The penalty is calculated as $55times number of vehicles sold each month times the deficit in their average mpg from the 30mpg standard.
V Corp is beginning to make a D vehicle which gets 75mpg. They estimate initially adding 2 D vehicles to their production each month. Compute their new monthly penalty.
Answer by CPhill(1987)   (Show Source):
You can put this solution on YOUR website! Here's how to calculate ZV Corp's new monthly penalty:
1. **Calculate the total miles driven by each vehicle type:**
* A vehicles: 230 vehicles * 10 mpg = 2300 miles
* B vehicles: 500 vehicles * 20 mpg = 10000 miles
* C vehicles: 70 vehicles * 40 mpg = 2800 miles
* D vehicles: 2 vehicles * 75 mpg = 150 miles
2. **Calculate the total miles driven by all vehicles:**
Total miles = 2300 + 10000 + 2800 + 150 = 15250 miles
3. **Calculate the total number of vehicles:**
Total vehicles = 230 + 500 + 70 + 2 = 802 vehicles
4. **Calculate the company's average mpg:**
Average mpg = Total miles / Total vehicles
Average mpg = 15250 / 802
Average mpg ≈ 19.015 mpg
5. **Calculate the mpg deficit:**
Deficit = Standard mpg - Company average mpg
Deficit = 30 mpg - 19.015 mpg
Deficit ≈ 10.985 mpg
6. **Calculate the total penalty:**
Penalty = $55 * Total vehicles * Deficit
Penalty = $55 * 802 * 10.985
Penalty ≈ $485,355.70
Therefore, ZV Corp's new monthly penalty is approximately $\boxed{485,355.70}$.
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