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Exercise 1.24 Suppose the current average cost per kilometre for operating a car is $0.45. Maggie is required to drive to a client's office
Exercise 1.24 Suppose the current average cost per kilometre for operating a car is $0.45. Maggie is required to drive to a client's office that is 36 kilometres away (72 kilometres round-trip). She can use her own car and be reimbursed $0.29 per kilometre or use a company-owned vehicle. Your answer is correct. What costs would be included in the current average cost per kilometre that might be irrelevant to Maggie's decision to drive 72 kilometres? Irrelevant costs Depreciation & Insurance SHOW SOLUTION SHOW ANSWER LINK TO TEXT Your answer is partially correct. Try again. Suppose Maggie determined that the cost of gasoline and maintenance for her car is about $0.23 per kilometre. What will Maggie's reimbursement be if she drives her own car? Which alternative is better? (Round answer to 2 decimal places, e.g. 52.75.) Reimbursement Amount
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