A motor carrier is trying to determine its cost to pick up a shipment originating in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A motor carrier is trying to determine its cost to pick up a shipment originating in Hot Springs, AR. The carrier dispatches a truck and trailer from Little Rock to pick up the load in Hot Springs. Little Rock is 50 miles from Hot Springs and the trip takes 1 hour. The driver arrives at the shipper and waits for 2 hours while the trailer is loaded. For this exercise the carrier is only concerned with the cost of driving from the terminal to Hot Springs and picking up the load (i.e., does not care about line-haul and delivery costs). Assume there are 30 days in a month. Use the information provided in the following table to determine how much it cost the carrier to pick up this load from Hot Springs: Equipment Purchase Price Tractor Trailer Depreciation Tractor Trailer Interest Tractor Trailer Fuel Labor Cost Driver Miscellaneous Insurance cost Maintenance cost = $80,000 (Monthly payment - $1,584) $35,000 (Monthly payment - $406) 5-year straight line 10-year straight line 7% APR for 5 years 7% APR for 10 years $5.00/gallon for diesel and the tractor gets 6.5 mpg $0.40 per mile $0.03 per mile $0.15 per mile $1.95 per pick up Billing cost W Depreciation expense equipment cost/depreciation years/days in a year/hours in a day Interest expense monthly payment/days in a month/hours in a day Fuel expense fuel cost per gallon/equipment miles per gallon What is the total depreciation expense for this pick-up? What is the total fuel cost for this pick-up? What is the total cost for this pick-up? How much would the carrier need to charge per mile to break-even on this pick-up? : A motor carrier is trying to determine its cost to pick up a shipment originating in Hot Springs, AR. The carrier dispatches a truck and trailer from Little Rock to pick up the load in Hot Springs. Little Rock is 50 miles from Hot Springs and the trip takes 1 hour. The driver arrives at the shipper and waits for 2 hours while the trailer is loaded. For this exercise the carrier is only concerned with the cost of driving from the terminal to Hot Springs and picking up the load (i.e., does not care about line-haul and delivery costs). Assume there are 30 days in a month. Use the information provided in the following table to determine how much it cost the carrier to pick up this load from Hot Springs: Equipment Purchase Price Tractor Trailer Depreciation Tractor Trailer Interest Tractor Trailer Fuel Labor Cost Driver Miscellaneous Insurance cost Maintenance cost = $80,000 (Monthly payment - $1,584) $35,000 (Monthly payment - $406) 5-year straight line 10-year straight line 7% APR for 5 years 7% APR for 10 years $5.00/gallon for diesel and the tractor gets 6.5 mpg $0.40 per mile $0.03 per mile $0.15 per mile $1.95 per pick up Billing cost W Depreciation expense equipment cost/depreciation years/days in a year/hours in a day Interest expense monthly payment/days in a month/hours in a day Fuel expense fuel cost per gallon/equipment miles per gallon What is the total depreciation expense for this pick-up? What is the total fuel cost for this pick-up? What is the total cost for this pick-up? How much would the carrier need to charge per mile to break-even on this pick-up? :
Expert Answer:
Answer rating: 100% (QA)
a The total depreciation expense for this pickup is Tractor 80000 5 years 16000 per year 16000 365 ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Financial highlights taken from Prospectus on ADAMS Foods Ltd are given in the grid below. The IPO consisted of 29.143 million common (ordinary) stocks, representing 25% of the total post-IPO paid-up...
-
2.9 In Figure 2.41 calculate the X-ray intensity, as a function of the incident intensity Io, that reaches the detector for each of the three X-ray beams. The dark-shaded area represents bone, and...
-
The shaft shown in the figure is supported by two bearings and carries two V-belt sheaves. The tensions in the belts exert horizontal forces on the shaft, tending to bend it in the X-Z plane. Sheave...
-
Ivanhoe Company was formed on July 1, 2018 It was authorized to issue 285,500 shares of $10 par value common stock and 95,400 shares of 8 $25 par value, cumulative and nonparticipating preferred...
-
Water can act as an electrophile or as a nucleophile. Explain.
-
Let G'(t) = g(t) and G(0) = 4. Use Figure 6.6 to find the values of G(t) at t = 5, 10, 20, 25. 2 -2 -8(r)_ 10 15 20 Figure 6.6
-
Consider the following cash flow diagram. What is the value of \(X\) if the internal rate of return is 15 percent? a. \(\$ 246\) b. \(\$ 255\) c. \(\$ 281\) d. \(\$ 290\) 0 $400 X X 1 2
-
Quaint Construction, Inc., is a home builder in Arizona. Quaint uses a job order costing system in which each house is a job. Because it constructs houses, the company uses an account titled...
-
Interest I, Shakira Wishes To Barrow 8230,000 Eroun A Bank To Buy A House. The But It Is Compounded Monthly. She Wants To Know What Ber Monthly Payment 4.8% Per Year In Order To Pay Off The Loan In...
-
GloFish, Inc. has genetically engineered a species of fish that glows in normal lighting conditions. The company believes the new fish will be a huge success as a new pet option for children and...
-
With regard to pollution in general and the disposal of toxic wastes in particular, what are the obligations of individual manufacturers and of society as a whole to future generations?
-
Suppose a central banks short-run response to any change in the economy is to change the money supply to maintain the existing real interest rate. What would happen to the money supply if there were...
-
If the United States raises the restrictions for immigrants coming from Australia, what will happen in the market for Uber services in the state of California? Po Change- S SPO D A Qo Q Demand...
-
Construct a plan to address the challenge of the cultural diversity problem in an organization (can be an imaginary company). Identify the problems and suggest solutions to these problems as a leader.
-
Briefly discuss five of the following aspects of technology strategy listed below: Timing of market entry Technology portfolio Level of expertise in each technology Sourcing of technology Level...
-
An economist needs to predict the real wage rate, employment, output, real interest rate, consumption, investment, and price level. The economy is hit with a shock, which the economist thinks is a...
-
Suppose you are given a list of n distinct elements. You are asked to sort this list in descending order (from greatest to smallest) using Insertion Sort algorithm: The informal description of...
-
Nitrogen monoxide reacts with hydrogen as follows: 2NO(g)+ H2(g) N2O(g) + H2O(g) The rate law is [H2]/ t = k[NO]2[H2], where k is 1.10 107 L2/(mol2s) at 826oC. A vessel contains NO and H2 at...
-
A 2.0-kg box rests on a plank that is inclined at an angle of 65° above the horizontal. The upper end of the box is attached to a spring with a force constant of 360 N/m, as shown in FIGURE 6-72....
-
A solid block is attached to a spring scale. When the block is suspended in air, the scale reads 21.2 N; when it is completely immersed in water, the scale reads 18.2 N. What are (a) The volume and...
-
The terminals A and B in Figure 21-42 are connected to a 9.0-V battery. Figure 21-42, (a) Find the current flowing through each resistor. (b) Is the potential difference across the 6.3- resistor...
-
Given your response to item 2, how would these measures be useful? What could they be used for? Turnover is costly for organizations. In addition to the direct costs of recruiting, hiring, and...
-
How does New Belgium introduce fun into the workplace? How does having fun keep employees engaged and enthusiastic about their work and the company? Kim Jordan and Jeff Lebesch, the husband and wife...
-
Visit the New Belgium Brewing Web site (www.newbelgium.com) to learn more about the company. The company has a strong culture that values environmental sustainability. Here are its core beliefs: We...
Study smarter with the SolutionInn App