Question
Hart Company sells and delivers office furniture across Western Canada. The costs associated with the acquisition and annual operation of a delivery truck are given
Hart Company sells and delivers office furniture across Western Canada.
The costs associated with the acquisition and annual operation of a delivery truck are given below:
Insurance$4,446Licences$210Taxes (vehicle)$124Garage rent for parking (per truck)$1,240Depreciation ($26,000 5 years)$5,200Gasoline, oil, tires, and repairs$0.21/km
Required:
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 kilometres away. What costs from the previous list 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.)
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