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Your small remodeling business has two work vehicles. One is a small passenger car used for...

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 $3.35 per gallon.

Calculate the annual fuel savings, in gallons, for the truck and car assuming both vehicles are driven 8,500 miles per year. (Round your answers to 2 decimal places, e.g., 32.16.)

Assuming an upgrade is a good idea in the first place, which one should you upgrade? Both vehicles are driven 8,500 miles per year. Truck or Car

Solutions

Expert Solution

Calculation of Fuel saved for Upgrade of Car

Before Upgrade

Total miles driven in year = 8,500

Car milage = 25 mpg

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

= 8,500 miles / 25 mpg

= 340 gallon

After Upgrade

Total miles driven in year = 8,500

Car milage = 40 mpg

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

= 8,500 miles / 40 mpg

= 212.5 gallon

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

= 340 gallons - 212.5 gallons

= 127.5 gallons

Fuel savings in upgrade of car = Gallons saved * cost of gasoline = 127.5 gallons * $3.35 per gallon = $427.125

>>>>

Calculation of Fuel saved for Upgrade of Truck

Before Upgrade

Total miles driven in year = 8,500

Truck milage = 10 mpg

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

= 8,500 miles / 10 mpg

= 850 gallon

After Upgrade

Total miles driven in year = 8,500

Truck milage = 12.5 mpg

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

= 8,500 miles / 12.5 mpg

= 680 gallons

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

= 850 gallons - 680 gallons

= 170 gallons

Fuel savings in upgrade of truck = Gallons saved * cost of gasoline = 170 gallons * $3.35 per gallon = $569.5

Therefore,

Fuel savings of Car Upgrade is $427.13

Fuel Savings of Truck upgrade is $569.5

Fuel savings of Truck is more than Car. Hence Truck should be upgraded first.

jeff jeffy answered 1 year ago
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