Of change every 3,000 miles Maintenance (other than oil) every 6,000 miles Yearly insurance Auto cost $13,500 with an average cash trade-in value of $6,000; has a useful life of three years. Gasoline is approximately $1.70 per gallon and Huang averages 17 miles per gallon. 530 A 70) When Huang is on the road, he averages 120 miles a day. McHale knows that Hu does not work Saturdays or Sundays, has 10 working days vacation and 6 holidays, and spends approximately 15 working days in the office. 1. How many miles per year would Huang have to travel to break even at the curren rate of reimbursement? 2. What would be an equitable mileage rate? 2-40 Government Organization I A social welfare agency has a government budget appropriation for 19X6 of $900,000 The agency's major mission is to help handicapped persons who are unable to hold jobs On the average, the agency supplements each person's other income by $5,000 annualy The agency's fixed costs are $290,000. There are no other costs. 2-39 Traveling Expenses An Huang is a traveling inspector for the State Auditor's Office. He uses his own car and the agency reimburses him at 23 per mile. An Huang claims he needs 27 per mile just to break even. ne Focus on Decision Making Shawn McHale, the district manager, ing information about Huang's expenses. Oil change every 3,000 miles looks into the matter and compiles the follo I Maintenance (other than oil) every 6,000 miles Yearly insurance Auto cost $13,500 with an average cash trade-in value of $6,000; SAMSUNG 5.30 240 705