The cost of converting a car to run on liquefied petroleum gas (LPG) is about £1,500 in the UK. LPG currently costs £0.6

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The cost of converting a car to run on liquefied petroleum gas(LPG) is about £1,500 in the UK. LPG currently costs £0.62 perlitre, compared with £1.33 for ordinary unleaded petrol. However,LPG cars usually have slightly worse fuel consumption, losing about15% in terms of miles per gallon. Additionally, the fuel systemshave to be serviced every 12,000 miles, which costs an additional£200 each time.
Goquick company owns a fleet of 20 cars, which are bought newand are used for 40,000 miles before being sold off. The carsaverage 40 miles to the gallon (imperial) on petrol. The conversionto LPG does not affect the price in the second-hand market.
Questions:
1. Calculatethe profit contribution per hundred miles of LPG compared withunleaded petrol, for one of Goquick’s cars.
2. Calculatethe break-even mileage for the cars with the LPG conversion.
3. Calculatethe effect on the profit of Goquick of converting to LPG.