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 $ $2,369$

Licences $ $165$

Taxes $($vehicle$)$ $ $106$

Garage rent for parking $($per truck$)$ $ $1,060$

Depreciation $($$$21,500-$: $5$ years$)$ $ $4,300$

Gasoline, oil, tires, and repairs $ $0\mathrm{.}12/$km

Required:

$1.$ Assume that Hart Company owns one truck that has been driven $50,000$ 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 $1,000$ 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.$)$

$4.$ Occasionally, the company could use two trucks at the same time. For this reason, some thought is being given to purchasing a second truck. The total kilometres driven would be the same as if only one truck were owned. What costs from the previous list are relevant to a decision about whether to purchase the second truck?