1. Assume that the company decides to use the truck during the second year. Near year end an order is received from a customer who is located 1,000 miles away. What costs from the above list are relevant in the decision between using the truck to make the delivery or have the transportation services outsourced to another transport company. Explain.
2. Occasionally, the company could use two trucks at the same time. For this reason, Mako Transport Sdn Bhd is thinking of purchasing a second truck. The total miles driven would be the same as if only one truck were owned. What costs from the above list are relevant to the decision over whether to purchase the second truck? Explain.