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Hour Cars and Trucks (HCT) offers hourly-rate car and truck rentals to customers in three cities: Phoenix, Austin, and NYC. HCT's head office controls
Hour Cars and Trucks (HCT) offers hourly-rate car and truck rentals to customers in three cities: Phoenix, Austin, and NYC. HCT's head office controls all new vehicle purchases but allows each location to set its own rental rates, determine its own depreciation expense, and obtain vehicle repair and maintenance services as the vehicles are used during the year. Each location has had the same number of vehicles and has not changed its rental rates since HCT started operations two years ago. The accounting supervisor in HCT's head office is preparing for HCT's December 31 year-end and has asked you the following questions. Required: 1. If more miles are driven in Year 2 than in Year 1, what should happen to the given items on HCT's income statement in Year 2 (as compared to Year 1)? Choose increase, decrease, or stay constant. The Tableau dashboard below shows monthly rental revenue, depreciation expense, and repairs and maintenance expense for the three cities combined. You can use the filter options in the upper right comer of the dashboard to answer questions 2-4 about each location
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