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Using MS Excel , MS Word, and the following information: 1 . Prepare a fixed - variable and over / under pricing structure

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
Mutually Exclusive
Fleet Opportunities Fleet Opportunity
A B C
Fleet Summary:
Tractors 5812
Trailers 102430
Utilization (Weekly Miles per Tractor)2,8002,9002,100

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