Speedy Parcel Service operates a fleet of delivery trucks in a large metropolitan area. A careful study by the company’s cost analyst has determined that if a truck isdriven 138,000 miles during a year, the average operating cost is 14.8 cents per mile. If a truck is driven only 92,000 miles during a year, the average operating costincreases to 18.6 cents per mile.
It was the first time at that location. 116 per mile the total cost at 120,000 = 13,920 There is at least one person at this time. 136 per mile, the total cost at 80,000 = 10,880 You subtract the low from the high if you have high low. $13,920 - $10,880 = $3,040 120,000 - 80,000 = 40,000 $3,040 / 40,000 = $. 076 this is the vc per mile At 120,000 miles x . 076 = 9,120 The total cost is 13,920 and the vc is 9120 so the fc is 4,800 At 80,000 x . 076 = 6,080 Total cost is 10,880 and the vc is 6080 so fc is 4800
It was the first time at that location. 116 per mile the total cost at 120,000 = 13,920 There is at least one person at this time. 136 per mile, the total cost at 80,000 = 10,880 You subtract the low from the high if you have high low. $13,920 - $10,880 = $3,040 120,000 - 80,000 = 40,000 $3,040 / 40,000 = $. 076 this is the vc per mile At 120,000 miles x . 076 = 9,120 The total cost is 13,920 and the vc is 9120 so the fc is 4,800 At 80,000 x . 076 = 6,080 Total cost is 10,880 and the vc is 6080 so fc is 4800
It was the first time at that location. 116 per mile the total cost at 120,000 = 13,920 There is at least one person at this time. 136 per mile, the total cost at 80,000 = 10,880 You subtract the low from the high if you have high low. $13,920 - $10,880 = $3,040 120,000 - 80,000 = 40,000 $3,040 / 40,000 = $. 076 this is the vc per mile At 120,000 miles x . 076 = 9,120 The total cost is 13,920 and the vc is 9120 so the fc is 4,800 At 80,000 x . 076 = 6,080 Total cost is 10,880 and the vc is 6080 so fc is 4800