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27 March, 13:51

Hire a firm to make deliveries for $200 per month plus mileage of 50 cents per mile based on average of 1200 miles per month. or lease a truck for $350 per month and pay the related expenses. You estimate that the related expenses for gas, insurance and other are $480 per month. which would be the best deal. how much would you save in a year

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  1. 27 March, 16:00
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    Hire a firm:

    Fixed: $200

    Mileage cost: 0.5 x 1200 = $600

    Total cost = $200 + $600 = $800

    Lease a truck:

    Fixed: $350

    Expense: $480

    Total = $350 + $480 = $830

    It is cheaper to hire a firm.

    Saving per month = 830 - 800 = $30

    Saving per year = $30 x 12 = $360

    Saving per year is estimated to be $360.
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