Hart Company sells and delivers office furniture across Western
Canada.
The costs associated with the acquisition and annual operation of a
delivery truck are given below:
Insurance$3,593 Licences$205 Taxes
(vehicle)$122 Garage rent for parking (per
truck)$1,220 Depreciation ($25,500 ÷ 5
years)$5,100 Gasoline, oil, tires, and
repairs$0.20/km
3.
Assume that the company decides to use the truck during the second
year. Near year-end, an order is received from a customer over
1,000 kilometres away. What costs from the previous list are
relevant in a decision between...