Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your small remodeling business has two work vehicles. One is a small passenger car used for job-site visits and for other general business purposes. The

Your small remodeling business has two work vehicles. One is a small passenger car used for job-site visits and for other general business purposes. The other is a heavy truck used to haul equipment. The car gets 25 miles per gallon (mpg). The truck gets 10 mpg. You want to improve gas mileage to save money, and you have enough money to upgrade one vehicle. The upgrade cost will be the same for both vehicles. An upgraded car will get 40 mpg; an upgraded truck will get 12.5 mpg. The cost of gasoline is $4.20 per gallon.

Calculate the annual fuel savings in gallons for the truck and car assuming both vehicles are driven 17,000 miles per year. (Round your answer to 2 decimal places. (e.g., 32.16))

Fuel savings

Truck gallons per year=?

Car gallons per year=?

Assuming an upgrade is a good idea in the first place, which one should you upgrade? Both vehicles are driven 17,000 miles per year.

Car or Truck?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The New Public Finance

Authors: Inge Kaul, Pedro Condeicao

1st Edition

0195179978, 978-0195179972

More Books

Students also viewed these Finance questions