Using MS Excel, MS Word, and the following information: 1. Prepare a fixed-variable and over/under pricing structure for the three private fleet opportunities listed below. 2. Prepare a pro forma income statement for the three private fleet opportunities listed below. 3 . Rank the three opportunities in order of preference. - Variable Costs - Driver Pay: \$0.40/mile - Fringe Benefits: 35% of wages - Fuel: \$2.42/Gallon and 8 MPG (new Freightliner Cascadia) - Maintenance: $0.15/ mile - Insurance: $0.13/ mile - Fixed Costs - Tractor Depreciation: $45,000/ year/tractor - Trailer Depreciation: $5,800/ year/trailer - Legalization/Recruiting/Administration: $20,000/ year/driver - Tractor Cost: $135,000 - Trailer Cost: $29,000 - Company will finance 75% of the capital investment - Interest Rate: 6% (calculate as simple annual interest) - Effective Tax Rate: 38% - ROA Hurdle Rate for New Capital Investments: 6% - OR Target Rate for Truckload Operations: 88% - Weeks per year: 52 - Length of contract: 3 years Using MS Excel, MS Word, and the following information: 1. Prepare a fixed-variable and over/under pricing structure for the three private fleet opportunities listed below. 2. Prepare a pro forma income statement for the three private fleet opportunities listed below. 3 . Rank the three opportunities in order of preference. - Variable Costs - Driver Pay: \$0.40/mile - Fringe Benefits: 35% of wages - Fuel: \$2.42/Gallon and 8 MPG (new Freightliner Cascadia) - Maintenance: $0.15/ mile - Insurance: $0.13/ mile - Fixed Costs - Tractor Depreciation: $45,000/ year/tractor - Trailer Depreciation: $5,800/ year/trailer - Legalization/Recruiting/Administration: $20,000/ year/driver - Tractor Cost: $135,000 - Trailer Cost: $29,000 - Company will finance 75% of the capital investment - Interest Rate: 6% (calculate as simple annual interest) - Effective Tax Rate: 38% - ROA Hurdle Rate for New Capital Investments: 6% - OR Target Rate for Truckload Operations: 88% - Weeks per year: 52 - Length of contract: 3 years
