Ea7.
lo 2.2western trucking operates a fleet of delivery trucks. the fixed expenses to operate the fleet are $79,900 in march and rose to $93,120 in april. it costs western trucking $0.15 per mile in variable costs. in march, the delivery trucks were driven a total of 85,000 miles, and in april, they were driven a total of 96,000 miles. using this information, answer the following:

what were the total costs to operate the fleet in march and april, respectively?
what were the cost per mile to operate the fleet in march and april, respectively?

(a) $92,650; $107,520

(b) $1.09 per mile; $1.12 per mile

Explanation:

(a) March:

Total cost to operate the aircraft:

= Fixed cost + Variable cost

= $79,900 + ($0.15 × 85,000 miles)

= $79,900 + $12,750

= $92,650

April:

Total cost to operate the aircraft:

= Fixed cost + Variable cost

= $93,120 + ($0.15 × 96,000 miles)

= $93,120 + $14,400

= $107,520

(b)

Total costs per mile to operate the fleet in March:

= Total cost in March ÷ Miles flew in March

= $92,650 ÷ 85,000

= $1.09 per mile

Total costs per mile to operate the fleet in April:

= Total cost in April ÷ Miles flew in April

= $107,520 ÷ 96,000

= $1.12 per mile

answer(d) all of the choices are correct;