1. Profitability: The average delivery truck drives 84 miles per day to deliver packages on their route. They drive MY 2006 Freightliner P70D diesels, which get an average of 10.2 miles per gallon. Each truck driver earns an average of $20.42 per hour (including payroll taxes and benefits), for a total of 8 hours per day. Answer the following questions:

1. If package delivery per truck remains static at 120 packages per day, but fuel prices fluctuate from $3.20 to $3.56, what is the effect on per-unit delivery costs? How about from $3.20 to $2.84?
2. If fuel prices remain static at $3.20 but package delivery fluctuates from 120 to 156, what are the effects on per unit costs? What if package delivery decreases to 84?
3. What are the differences on unit cost between fuel price fluctuations and package delivery fluctuations?
4. Are these impacts large or small? What about over 15 million units per day? What are the final effects on total costs?
5. How does your analysis support or not support B-lines operational model?