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4. After a closer examination of capacity, management believes an additional rig is required to service the FHP account. Assume Cascade's management chooses to invest

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4. After a closer examination of capacity, management believes an additional rig is required to service the FHP account. Assume Cascade's management chooses to invest in one additional truck and trailer that can serve the needs of FHP (at least initially). Assume the annual incremental xed costs associated with acquiring the additional equipment is $50,000. Further, FHP would agree to pay $2.20 per mile (total including FSC and miscellaneous) if Cascade would sign a ve-year contract. What is the annual number of miles required for Cascade to break even, assuming the company adds one truck and trailer

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