Flexgen Corporation uses trucks to transport bottles from the warehouse to different retail outlets. Gasoline costs are $0.25 per kilometre driven. Insurance costs are $5,500 per year. Calculate the total costs and the cost per kilometre for gasoline and insurance if the truck is driven (a) 21,000 kilometres per year or (b) 37,000 kilometres per year. Complete the table below. (Round the costs per kilometre to the nearest cent, $X.XX.) (a) Driven 21,000 kilometres Total costs Cost per kilometre G (b) Driven 37,000 kilometres
Flexgen Corporation uses trucks to transport bottles from the warehouse to different retail outlets. Gasoline costs are $0.25 per kilometre driven. Insurance costs are $5,500 per year. Calculate the total costs and the cost per kilometre for gasoline and insurance if the truck is driven (a) 21,000 kilometres per year or (b) 37,000 kilometres per year. Complete the table below. (Round the costs per kilometre to the nearest cent, $X.XX.) (a) Driven 21,000 kilometres Total costs Cost per kilometre G (b) Driven 37,000 kilometres
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Step 1 Introduction
The total cost of truck would be calculated as the total gasoline costs and insurance costs.
The cost per kilometer would be calculated as the total cost divided by the number of kilometers.
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