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Exercise 127 Identification of Relevant Costs [LO1] Hart Company sells and delivers office furniture across Western Canada. The costs associated with the ocquisition and annual

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Exercise 127 Identification of Relevant Costs [LO1] Hart Company sells and delivers office furniture across Western Canada. The costs associated with the ocquisition and annual operation of a delivery truck are given below. Required: 1. Assume that Hart Company owns one truck that has been driven 43,000 kilometres during the first year. Compute the average cost per kilometre of owning and operating the truck. (Round your answer to 2 decimal places.) 2. This part of the question is not part of your Connect assignment. 3. Assume that the company decides to use the truck during the second year. Near year-end, an order is received from a customer over 1,000 kllometres away. What costs from the previous Hist are relevant in a decision between using the truck to make the delivery and having the delivery done commercially? (Round your answer to 2 decimal places.) 4. Occasionally, the company could use two trucks at the same time. For this reason, some thought is being given to purchasing a socond truck. The total kilometres driven worid be the same as if only one truck were owned. What costs from the previous ilst are. relevant to a decision about whether to purchase the second truck

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