Question

In: Accounting

Magna Magna Corporation uses trucks to transport bottles from the warehouse to different retail outlets. Gasoline...

Magna Magna Corporation uses trucks to transport bottles from the warehouse to different retail outlets. Gasoline costs are $ 0.26 $0.26 per mile driven. Insurance costs are $ 7 comma 000 $7,000 per year. Calculate the total costs and the cost per mile for gasoline and insurance if the truck is driven​ (a) 16 comma 000 16,000 miles per year or​ (b) 35 comma 000 35,000 miles per year. ​(Round the cost per mile answers to the nearest​ cent, $X.XX.)

Solutions

Expert Solution

NOTE:

Variable cost per unit and Total fixed costs do not change with change in units.

a.Total cost=(0.26*16000)+$7000

=$11,160

Total Cost per mile=$11,160/16000

=0.70(Approx).

Cost per mile for gasoline=$0.26

Cost per mile for insurance=7000/16000=$0.44(Approx)

b.Total cost=(0.26*35000)+$7000

=$16,100

Total Cost per mile=$16100/35000

=0.46

Cost per mile for gasoline=$0.26

Cost per mile for insurance=7000/35000=$0.20

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The Energy Information Administration (EIA) sampled 900 retail gasoline outlets and reported that, the national average...
The Energy Information Administration (EIA) sampled 900 retail gasoline outlets and reported that, the national average gasoline price for regular-grade gasoline to be $4.113 per gallon with a standard deviation of $0.11 per gallon. Construct a 95% Confidence Interval for mean price of regular-grade gasoline price.
The Energy Information Administration (EIA) sampled 900 retail gasoline outlets and reported that, the national average...
The Energy Information Administration (EIA) sampled 900 retail gasoline outlets and reported that, the national average gasoline price for regular-grade gasoline to be $4.113 per gallon with a standard deviation of $0.11 per gallon. Construct a 95% Confidence Interval for mean price of regular-grade gasoline price.
A simple random sample was taken of 44 water bottles from a bottling plant’s warehouse. The...
A simple random sample was taken of 44 water bottles from a bottling plant’s warehouse. The dissolved oxygen content (in mg/L) was measured for each bottle, with these results: 11.53, 8.35, 11.66, 11.54, 9.83, 5.92, 7.14, 8.41, 8.99, 13.81, 10.53, 7.4, 6.7, 8.42, 8.4, 8.18, 9.5, 7.22, 9.87, 6.52, 8.55, 9.75, 9.27, 10.61, 8.89, 10.01, 11.17, 7.62, 6.43, 9.09, 8.53, 7.91, 8.13, 7.7, 10.45, 11.3, 10.98, 8.14, 11.48, 8.44, 12.52, 10.12, 8.09, 7.34 Here the sample mean is 9.14 mg/L....
Tanker trucks are designed to carry huge quantities of gasoline from refineries to filling stations. A...
Tanker trucks are designed to carry huge quantities of gasoline from refineries to filling stations. A factory that manufactures the tank of the trucks claims to manufacture tanks with a capacity of 8550 gallons of gasoline. The actual capacity of the tanks is normally distributed with mean μ=8544 gallons and standard deviation σ=12 gallons. Part 3: What is the probability that a sample of size 20 will have a mean between 8538 and 8550 gallons?
Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the...
Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the company’s mine to its two steel mills—the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $200,100 per year, consisting of $0.21 per ton variable cost and $150,100 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 58% of the Transport Services Department’s capacity and the Southern Plant...
Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the...
Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the company’s mine to its two steel mills—the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $192,500 per year, consisting of $0.24 per ton variable cost and $142,500 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 65% of the Transport Services Department’s capacity and the Southern Plant...
Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the...
Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the company’s mine to its two steel mills—the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $255,000 per year, consisting of $0.21 per ton variable cost and $205,000 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 65% of the Transport Services Department’s capacity and the Southern Plant...
Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the...
Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the company’s mine to its two steel mills—the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $225,300 per year, consisting of $0.25 per ton variable cost and $175,300 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 55% of the Transport Services Department’s capacity and the Southern Plant...
Retail Inventory Method Turner Corporation uses the retail inventory method. The following information relates to 2016:...
Retail Inventory Method Turner Corporation uses the retail inventory method. The following information relates to 2016: Cost Retail Cost Retail Inventory, January 1 $ 29,000 $ 45,000 Additional markups — $ 50,000 Purchases (gross price) 140,000 190,000 Markup cancellations — 10,000 Purchases discounts taken 3,000 — Markdowns — 15,000 Purchases returns 5,000 8,000 Markdown cancellations — 3,000 Freight-in 20,000 — Net Sales — 190,000 Employee discounts — 3,000 Required: 1. Compute the cost of the ending inventory under each of...
A retail chain has eight stores in a region supplied from four supply sources. Trucks have...
A retail chain has eight stores in a region supplied from four supply sources. Trucks have a capacity of 40,000 units and cost $1,000 per load plus $100 per delivery. Thus, a truck making two deliveries charges $1,200. The cost of holding one unit in inventory at retail for a year is $0.20. • The vice president of the supply chain is considering whether to use direct shipping from suppliers to retail stores or setting up milk runs from suppliers...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT