Suppose you manage a delivery company and you must choose between two transportation methods: (a) truck or (b) train. (a) Trucks: Costs U$ 26,000 upfront. For each mile it runs it costs U$ 2.00 in gas. Maintenance costs U$ 4,000 per year and additional U$ 1.00 per mile run. (b) Train: To lease a container that carries the same volume of orders as the truck it costs U$ 10.000 per year. In addition it costs U$ 4.00 per mile to move orders around. Suppose you had to transport packages over 5000 miles in 2017. What's your average cost for that year?
A: U$ 6.60 for (a) truck and US 2.80 for (b) train.
B: U$ 9.00 for (a) truck and U$ 6.00 for (b) train.
C: U$ 3.00 for (a) truck and U$ 4.00 for (b) train.
D: U$ 6.00 for (a) truck and U$ 2.00 for (b) train.
+4
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose you manage a delivery company and you must choose between two transportation methods: (a) truck or (b) train. (a) Trucks: Costs U$ ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Home » Business » Suppose you manage a delivery company and you must choose between two transportation methods: (a) truck or (b) train. (a) Trucks: Costs U$ 26,000 upfront. For each mile it runs it costs U$ 2.00 in gas.