Tom drives a truck. His regular trip is a distance of 280 km. He drives at an average speed of 80 km/h. For safety reasons Tom’s boss puts a speed limiter on his truck. This reduces Tom’s average speed by 10 km/h.

Question prompt

The total operating cost for the truck is $400 000 per year. The percentage breakdown of this total amount was:

40%: Fixed costs (insurance, registration, wages)
30%: Fuel
20%: Finance
10%: Maintenance (service, repairs, tyres)

Suppose the fuel price increases from $1.50 to $1.60 per litre.

How much does this add to the total operating cost per year?