Pepsi Corporation uses trucks to transport bottles from the warehouse to different retail outlets. Gasoline costs are
Question:
Pepsi Corporation uses trucks to transport bottles from the warehouse to different retail outlets. Gasoline costs are $0.15 per mile driven. Insurance costs are $6,000 per year. Calculate the total costs and the cost per mile for gasoline and insurance if the truck is driven
(a) 20,000 miles per year or
(b) 30,000 miles per year.
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