#34

Matthew Corporation is adding a new product line that will require an investment of

$ $135,000.

The product line is estimated to generate cash inflows of

$ $25,000

the first year,

$ $20,000

the second year, and

$ $15,000

each year thereafter for ten more years. What is the payback period?

#40

Johnson Trucking Company wants to determine a fuel surcharge to add to its customers' bills based on the number of miles driven to each area. It wants to separate the fixed and variable portion of the truck's operating costs so it has a better idea of how distance affects these costs. Johnson Trucking Company has the following data available.

Month	Miles driven	Total operating costs
January	16,200	$22,650
February	17,000	$23,250
March	20,000	$ $26,000
April	16,500	$22,875
May	17,400	$23,550
June	16,000	$ $21,000

Using the

highlow

method, the monthly operating costs if Johnson Trucking Company drives

24,000

miles in a month will be (Round any intermediary calculations to the nearest cent.)