Question: Question 2 20 points Save Answer The Amazon Transit Authority in Los Angeles is considering the type of engine to purchase for its next bus

Question 2 20 points Save Answer The Amazon Transit Authority in Los Angeles is considering the type of engine to purchase for its next bus fleet. Currently, the city's bus fleet is equipped with buses using gasoline V-8, 370-cubic inch engines and manual transmissions and with buses using diesel V-8, and 8.2-liter engines and automatic transmissions. Each bus has a service life of ten years. The Transit Authority has maintained yearly records of the cost of operations and repairs for each type of bus in its fleet, and the information is furnished below. You have been hired as an engineering consultant to perform an economic analysis. Bus Operating Costs Gasoline Engines Diesel Engines Year Operating costs Miles Driven Operating costs Miles Driven 1998 $3,565 8,969 $2,906 11,919 1999 $2,428 5,206 $2,876 10,830 2000 $2,352 2,784 $2,876 15,612 2001 $6,307 3,309 $4,784 9,296 Totals $14,652 20,268 $14,442 47,657 Use the above information: (a) Compute the average cost per mile for Gasoline Engines, and Diesel Engines over the given time periods. (b) Identify the type of engine, gasoline or diesel that is more economical for the Transit Authority bus line. Please indicate the reason for your choice
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