In this scenario, if Over-land utilized existing equipment then the purchase of additional trailers

is not required. In this case, the fixed expenses would remain the same. Due to normal operation

business Over-land has this cost with or without accepting FHP's request to add two additional

loads per week. Because this expense is there regardless, this would not be a relevant cost in

accepting or denying proposal. Under these circumstances, Over-land could assume the only

costs the yield concern would be variable.