Concept explainers
Western Trucking operates a fleet of delivery trucks. The fixed expenses to operate the fleet are $79,900 in March and rose to $93,120 in April. It costs Western Trucking $0.15 per mile in variable costs. In March, the delivery trucks were driven a total of 85,000 miles, and in April,. they were driven a total of 96,000 miles. Using this information, answer the following:
A. What were the total costs to operate the fleet in March and April, respectively?
B. What were the cost per mile to operate the fleet in March and April, respectively?
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Principles of Accounting Volume 2
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