Hire a firm to make deliveries for $200 per month plus mileage of 50 cents per mile based on average of 1200 miles per month. or lease a truck for $350 per month and pay the related expenses. You estimate that the related expenses for gas, insurance and other are $480 per month. which would be the best deal. how much would you save in a year

Question

Mathematics

Valery Obrien

6 April, 09:43

Hire a firm to make deliveries for $200 per month plus mileage of 50 cents per mile based on average of 1200 miles per month. or lease a truck for $350 per month and pay the related expenses. You estimate that the related expenses for gas, insurance and other are $480 per month. which would be the best deal. how much would you save in a year

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Orlando Miller · Answer 1

Hire a firm:

Fixed: $200

Mileage cost: 0.5 x 1200 = $600

Total cost = $200 + $600 = $800

Lease a truck:

Fixed: $350

Expense: $480

Total = $350 + $480 = $830

It is cheaper to hire a firm.

Saving per month = 830 - 800 = $30

Saving per year = $30 x 12 = $360

Saving per year is estimated to be $360.