Question: Assignment 1 0 Bruce s Born to Run As the tour manager for Bruce Springsteen, you have been asked by the band to reduce costs

Assignment 10 Bruces Born to Run
As the tour manager for Bruce Springsteen, you have been asked by the band to reduce costs of transportation. You currently have a private fleet of tractor and trailers that the band from city to city.
A third party, 10th Avenue Freeze Out, a for-hire carrier has quoted a flat fee for equipment shipments of $2.00 per mile.
Your tractor, nicknamed Born to Run has a 45 trailer and can carry 300 amplifiers, each weighing 150 lbs. The route to Jersey is 767 miles, and the drive time is 15hrs. one way.
Your variable costs include fuel and labor.
The cost of fuel (Material) is per gallon ($6.50) and your truck get 6 miles per gallon (MPG).
Your driver (Labor) under union rules, gets paid 54 cents a mile AND $22/hr. for rest time. NTSB, a government agency, rules indicate your driver can only drive 11 hrs./day and then must have rest time of 10 hrs. Calculate the following for a one-way trip:
Calculate the total labor cost?
Calculate the total fuel charge for the trip?
Calculate the total variable cost?
Calculate total variable cost per mile?
What is your decision (keep your current private fleet or choose Take it Easy @$2.00 a mile) and why?

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