A delivery company is implementing a system to compare the costs of purchasing and operating different vehicles

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A delivery company is implementing a system to compare the costs of purchasing and operating different vehicles in its fleet. Truck 415 is driven 125,000 miles per year at a variable cost of $0.13 per mile. Truck 415 has a capacity of 28,000 pounds and delivers 250 full loads per year.
What amount is the truck’s delivery cost per pound?
a. $0.00163 per pound
b. $0.00232 per pound
c. $0.58036 per pound
d. $1.72000 per pound
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Related Book For  book-img-for-question

Cornerstones of Cost Management

ISBN: 978-1285751788

3rd edition

Authors: Don R. Hansen, Maryanne M. Mowen

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