Question

Western Trucking operates a fleet of delivery trucks. The fixed expenses to operate the fleet are $80,840 in March and rose to $95,060 In April. It costs Western Trucking $0.16 per mile in variable costs. In March, the delivery trucks were driven a total of 86,000 miles, and in April, they were driven a total of 98,000 miles. Using this information, answer the following: A. What were the total costs to operate the fleet in March and April, respectively? March April Total cost $ 93,774.4 X $ 110,269.6 x B. What were the cost per mile to operate the feet in March and April, respectively? If required, round your answers to nearest cent. March April 110,269.6 Cost per mile $ 93,774.4 x Feedback Check My Work Determine total costs (which includes fixed and variable costs). Once the total cost is determined, divide by the number of units to determine the per cost amount. Dne

Answer 1

A) Total costs:
	March	April
Variable costs	86000*0.16=13760	98000*0.16 = 15680
Fixed costs	80840	95060
Total costs, $	94600	110740
B) Cost per mile:
	March	April
Total Costs (i)	94600	110740
Total Miles driven (ii)	86000	98000
Cost per mile (i/ ii) , $	1.1	1.13