Question

Your small remodeling business has two work vehicles. One is a small passenger car used for job site visits and for other general business purposes. The other is a heavy truck used to haul equipment. The car gets 25 miles per gallon (mpg). The truck gets 10 mpg. You want to improve gas mileage to save money, and you have enough money to upgrade one vehicle. The upgrade cost will be the same for both vehicles. An upgraded car will get 40 mpg; an upgraded truck will get 12.5 mpg. The cost of gasoline is $2.65 per gallon. Calculate the annual fuel savings in gallons for the truck and car assuming both vehicles are driven 12,000 miles per year. (Do not round intermediate calculations.) Assuming an upgrade is a good idea in the first place, which one should you upgrade? Both vehicles are driven 12,000 miles per year.

Truck Gallons per year=

Car Gallons per year=

Assuming an upgrade is a good idea in the first place, which one should you upgrade? Both vehicles are driven 12,000 miles per year.

Answer 1

>>>>

Calculation of Gallons saved for Upgrade of Car

Before Upgrade

Total miles driven in year = 12,000

Car milage = 25 mpg

Car Gallons per year = Total miles driven in year / Car milage

= 12000 miles / 25 mpg

= 480 gallon

After Upgrade

Total miles driven in year = 12,000

Car milage = 40 mpg

Car Gallons per year = Total miles driven in year / Car milage

= 12000 miles / 40 mpg

= 300 gallon

Gallons saved for Car due to upgradation = Gallons before upgrade - Gallons before upgrade

= 480 gallons - 300 gallons

= 180 gallons

>>>>

Calculation of Gallons saved for Upgrade of Truck

Before Upgrade

Total miles driven in year = 12,000

Truck milage = 10 mpg

Truck Gallons per year = Total miles driven in year / Truck milage

= 12000 miles / 10 mpg

= 1200 gallon

After Upgrade

Total miles driven in year = 12,000

Truck milage = 12.5 mpg

Truck Gallons per year = Total miles driven in year / Truck milage

= 12000 miles / 12.5 mpg

= 960 gallons

Gallons saved for truck due to upgradation = Gallons before upgrade - Gallons before upgrade

= 1200 gallons - 960 gallons

= 240 gallons

Gallons saved due to upgrade of truck = 240 gallons

Gallons saved due to upgrade of Car = 180 gallons

Amount saved in dollard for upgrade of truck = 240 gallons * $2.65 per gallon = $636

Amount saved in dollard for upgrade of Car = 180 gallons * $2.65 per gallon = $477

Gallons saved fot truck is higher than car. Hence Truck should be upgraded first