ABC Motor Transports, Inc., operates a fleet of trucks and 40-ft trailers that travel from New York to Cleveland and Detroit. The fixed cost for the fleet per year has averaged US $7,500,000. ABC determined that the average variable cost between New York and Cleveland and Detroit is US$325 per truck and 40-ft trailer. If the company, for the past 12 months, has contracted 95,000 shipments, what would be the total cost to ABC Motors?

Answer rating: 100% (QA)

To calculate the total cost for ABC Motor Transports we need to consider bot... View the full answer