Refer to the Wilson Trucking company information in Exercise 3-17.

Required:

I. Develop annual cost formulas for truck depreciation, fuel, and truck maintenance.

2. Using the three annual cost formulas that you developed, predict the cost of each resource in a year with 480,000,000 truck miles.

Exercise 3-17

Transcribed Image Text:

Resource Truck Kilometres Total Cost ($) Truck depreciation: High Low Fuel: 46,000,000 32,400,000 2,800,000 2,800,000 High Low 46,000,000 32,400,000 1,610,000 1,134,000 Truck maintenance: High 46,000,000 32,400,000 1,797,200 1,413,680 Low